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Stock Market Daily Updates: 14 Oct 2020

Market consolidated due to lower than anticipated stimulus package and the large part of the positive Q2 results announced till date is well factored in the prices.

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1575809288_yq1JW0_BSE_India.jpg

Dear Trader…

The benchmark started with volatile momentum led by optimism in global markets however profit-taking at higher levels gradually trimmed the gains as the session progressed.

The underperformance continued from the broader market indices as they lost in the range of 0.4-0.6%. On the sector front, defensive such as FMCG, IT and Healthcare ended in gains while all the other sectors ended lower wherein Oil & Gas, Metals and Telecom were top losers.

Market consolidated due to lower than anticipated stimulus package and the large part of the positive Q2 results announced till date is well factored in the prices. India VIX was down by 1.96 percent from 21.12 to 20.71 levels even the announcements made by FM to stimulate consumer spending and capital expenditure failed to cheer investors’ mood.

We believe, along with global cues, earnings announcements and macroeconomic data would dictate the market trend. Further, measures announced by FM to help revive the economy as well as spur demand would augur well for major sectors such as FMCG, Auto, Capital Goods, and Banking etc. ahead. Amid all, we expect volatility to remain high thus traders should maintain extra caution in trade selection and risk management.

The Nifty future settled in a volatile trading session after Stimulus announced by the government ahead of the festival season failed to lift sentiment which led to some consolidation on the Nifty trade. Going forward, consolidation is expected as Nifty trades near overbought levels

The moratorium case was scheduled to be heard in the Supreme Court on October 13, which has now been adjourned until October 14. Earlier, the Reserve Bank had said that giving more than six months to the moratorium could worsen the situation of banks. Hence the moratorium cannot be extended further.

Banking stocks may see an improvement due to the RBI's stance, but market will rely on banking stocks to decide what comes from the Supreme Court. In that Bank Nifty has to hold above 23474 points to witness an up move towards 23676 then 23808 points while on the downside key support exists at 23272 then 23000 points.

Nifty future continued it’s to range bound move towards 12008 levels. It managed to hold 11808 levels. Index continued its formation of higher lows for tenth trading sessions and entire base of the market is shifting higher to hit the psychological 12k and to knock the life time high territory.

We suggest to traders to wait for a breakout in either of the directions and should go long if index trades above 12008 levels whereas intraday shorting should be considered below 11860 for a modest target of 11808 points.

Now Nifty future has to continue to hold above 11808 levels to witness a further up move towards 11988 then 12008 levels while on the downside major support exists at 11808 levels.

Dear Traders…. For the Trading Idea of…

Ø Nifty Future opened @ 11902 as on 14.10.2020..!!

For Intraday, Nifty Future has resistance at 11919 – 11933 Point; above which other resistance levels are at 11960 – 11988 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11888 – 11860 Point; below 11860 Point, other support levels are at 11833 – 11808 Point.

I am positive for the next bullish trend only above @ 11988 Point but be with the trend. Let the market decide further moves. As we are saying from

many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario...!!!

Regarding Long term positions, it is preferable to remain cautious now...!!

If Nifty Future crosses @ 11988 Point, again then the upper side target is quite high and it may touch @ 12008 Point in the short term...!!!

Ø Bank Nifty Future opened @ 23369 as on 14.10.2020..!!

For Intraday, Bank Nifty Future has resistance at 23404 – 23447 Point; above which other resistance levels are at 23488 – 23505 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 23303 – 23232 Point; below 23232 Point, other support levels are at 23188 – 23088 Point.

I am positive for the next bullish trend only above @ 23505 Point but be with the trend. Let the market decide further moves. As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario...!!!

Regarding Long term positions, it is preferable to remain cautious now...!!

If Bank Nifty Future crosses @ 23505 Point, again then the upper side target is quite high and it may touch @ 23575 Point in the short term...!!

Ø Trading Idea for the derivative stocks….

Ø LARSEN LTD FO @ RS 892

Positive Trend @ Rs 892 / 873 with Stop loss of Rs @ 760 for the target near @ Rs 909 - 919 in short term…..!!!

Ø GRASIM IND. FO @ RS 739

Positive Trend @ Rs 739 / 727 with Stop loss of Rs @ 717 for the target near @ Rs 760 - 774 in short term…..!!!

Ø M & M FO @ RS 620

Positive Trend @ Rs 620 / 606 with Stop loss of Rs @ 597 for the target near @ Rs 644 - 650 in short term…..!!!

Ø GLENMARK PHARMA FO @ RS 488

Positive Trend @ Rs 488 / 480 with Stop loss of Rs @ 474 for the target near @ Rs 497 - 505 in short term…..!!!

Ø ACC LTD FO @ RS 1541

Negative Trend @ Rs 1541 / 1560 with Stop loss of Rs @ 1573 for the target near @ Rs 1527 – 1516 in short term...!!!

Ø LUPIN LTD FO @ RS 1057

Negative Trend @ Rs 1057 / 1073 with Stop loss of Rs @ 1080 for the target near @ Rs 1037 – 1030 in short term...!!!

Ø TECHM FO @ RS 873

Negative Trend @ Rs 873 / 888 with Stop loss of Rs @ 898 for the target near @ Rs 860 – 853 in short term...!!!

Ø AXIS BANK FO @ RS 458

Negative Trend @ Rs 458 / 474 with Stop loss of Rs @ 480 for the target near @ Rs 447 – 440 in short term...!!!

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Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


Nikhil Bhatt | Research Analyst - SEBI

The author is a well established entrepreneur having a more than 16 years of experience in the field of stock market and financial management.

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