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Stock Market Daily Updates: 15 Oct 2020

The short-term trend continues to be profit booking on every rise and the next range to be watched out for is around 11933 to 12088 points and this can be achieved in the short term. The immediate strong support is placed at 11919 points in Nifty Future.

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1575809288_yq1JW0_BSE_India.jpg

Dear Trader…

The Indian stock market started cautiously on the back of weak global signals. Despite the central government's announcement of a relief package for government employees on the eve of the festive season, but The market closed higher for the 10th consecutive trading session on buying in banking-finance stocks amid a nationwide outbreak of the Corona virus epidemic, with the Reserve Bank giving a big relief to the common man over loan restructuring over a loan moratorium hearing.

Markets tested major support at 200-DMA on Nifty future and rebounded from there over the last few sessions - this rally has been supported by the return of net buy flows from domestic institutional investors after a gap of nearly 2 months. Given the backdrop of elevated redemptions from domestic mutual funds over the last few months, this turn in flow environment speaks to ebbing of redemption pressures. 

Relative to large-caps, small-caps and mid-caps have shown stronger resilience and market breadth is currently near a 2- year high. While the bounce of broader indices from 200-DMA mirrors behavior seen at end-Jan '20, market breadth is much stronger currently. Among sectoral indices, FMCG index displays bullish signs having reclaimed its 200-DMA after a drop into oversold territory.

Friends, we still maintain our stance that prices are making higher highs with lower volumes, hence a minor pull back from current level cannot be ruled out. Hence, cautiously positive approach should be adopted at current level as stock specific activity is likely to continue. The Indian stock market is likely to see a two-way slump in the coming days amid hopes of a more stimulus package, quarterly results and signs of improvement in the macroeconomic situation.

The RBI had kept the repo rate unchanged at the MPC meeting last week, but announced several measures to boost liquidity, which were also welcomed by the market.

In the coming days The market's focus will now be on the September quarter results on the back of good results from TCS, Wipro and Infosys and share buybacks and dividends and the development of the upcoming US presidential election on the global front.

A close observation of the last five sessions reveals that the Nifty’s movement is almost flat with narrow ranges and indecisive formations. Hence, unless the Nifty future registers a strong close above 12088, further upward strength shall not be expected. A close below moving average at 11919 points can be considered as an initial sign of weakness.

Technically, we feel it’s a bullish continuation formation, however, for that the Nifty needs to cross the level of 12088 points.

The short-term trend continues to be profit booking on every rise and the next range to be watched out for is around 11933 to 12088 points and this can be achieved in the short term. The immediate strong support is placed at 11919 points in Nifty Future.

Dear Traders…. For the Trading Idea of

Ø  Nifty Future opened @ 11983 as on 15.10.2020

For Intraday, Nifty Future has resistance at 12009 – 12033 Point; above which other resistance levels are at 12047 – 12060 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11933 – 11909 Point; below11909 Point, other support levels are at 11888 – 11860 Point.

I am positive for the next bullish trend only above @ 12009 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 @ 12009 Point, again then the upper side target is quite high and it may touch @ 12033 Point in the short term

Ø Bank Nifty Future opened @ 23970 as on 15.10.2020

For Intraday, Bank Nifty Future has resistance at 24024 – 24140 Point; above which other resistance levels are at 24202 – 24240 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 23909 – 23838 Point; below23838 Point, other support levels are at 23737 – 23676 Point.

I am positive for the next bullish trend only above @ 24240 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 @ 24240 Point, again then the upper side target is quite high and it may touch @ 24303 Point in the short term

Ø Trading Idea for the derivative stocks….

Ø ACC LTD FO @ RS 1551

Positive Trend @ Rs 1551 / 1533 with Stop loss of Rs @ 1517 for the target near @ Rs 1573 - 1580 in short term

Ø INDIGO FO @ RS 1347

Positive Trend @ Rs 1347 / 1330 with Stop loss of Rs @ 1318 for the target near @ Rs 1360 - 1373 in short term

Ø LUPIN LTD FO @ RS 1030

Positive Trend @ Rs 1030 / 1013 with Stop loss of Rs @ 1003 for the target near @ Rs 1047 - 1055 in short term

Ø AURO PHARMA FO @ RS 814

Positive Trend @ Rs 814 / 808 with Stop loss of Rs @ 797 for the target near @ Rs 833 - 840 in short term

Ø RELIANCE IND. FO @ RS 2288

Negative Trend @ Rs 2288 / 2308 with Stop loss of Rs @ 2323 for the target near @ Rs 2260 – 2244 in short term.

Ø KOTAK BANK FO @ RS 1355

Negative Trend @ Rs 1355 / 1373 with Stop loss of Rs @ 1380 for the target near @ Rs 1340 – 1326 in short term

Ø SUN PHARMA FO @ RS 504

Negative Trend @ Rs 504 / 517 with Stop loss of Rs @ 530 for the target near @ Rs 488 – 480 in short term.

Ø ICICI BANK FO @ RS 404

Negative Trend @ Rs 404 / 414 with Stop loss of Rs @ 420 for the target near @ Rs 396 – 388 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.


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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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