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Stock Market Daily Updates: 15 Sep 2020

This is a negative indication, the key upside area of 11533 to 11575 points has acted as a strong overhead resistance and led to a sharp intraday weakness from the highs. Immediate downside levels to be watched is 11373 - 11303 points, which could be achieved by short term.

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Dear Trader…

On the first day of the week, the Indian stock market started trading strongly. The Indian stock market rebounded in anticipation of a positive impact on the agro-rural economy and a stimulus package in the country in the coming days, in anticipation of heavy rains this year along with global positive factors. 

The circular issued by SEBI last week with a new rule for multi cap funds has signaled a major shift in the mutual fund industry. The rule is to be implemented from January 2021 so that the market does not fluctuate in the coming days as many fund managers have to make major changes in their schemes. However, the market is likely to see the impact in the coming days. The Indian stock market closed with a slight decline on the back of global cues and sluggish investor sentiment.

Friends, Last week, the Indian stock market saw a positive momentum on the back of Reliance. The country's economy is in crisis, with cases rising steadily during the Corona epidemic. 

With the economic situation worsening, the declining industrial production is likely to exacerbate rising unemployment in the industry, forcing the government to re-launch a massive stimulus package for incentives. Given the huge funding required for this, the economy and the Indian stock market are likely to be hit hard in the coming days. 

We’re still seeing several themes playing well, so traders should align their positions accordingly. The upcoming macroeconomic data and cues from the global markets will remain in focus.In the coming days, the Indian market will keep an eye on the US Federal Reserve's policy meeting on September 16, 2020, the Bank of England, the Bank of Japan's meeting, the August figures for China's industrial production and the US retail sales figures.

India VIX moved up by 2.32 percent from 20.71 to 21.19 levels. VIX needs to cool down below 20-18 zones to get the bull grip for the next leg of the rally else the roller-coaster ride will continue in the Indian market.

Markets usually see such volatile swings during the consolidation phase and it’s no different this time. We reiterate our bullish yet cautious approach to markets and suggest accumulating quality stocks on dips.

Correction due to valuations or various uncertainties cannot be ruled out and volatility is expected to continue so trade cautiously and look at earnings stability, if investing for the long-term in small & mid caps.

The short-term trend of the Nifty future seems to be weakening at the key overhead resistance and one may expect further weakness in the coming session. This is a negative indication, The key upside area of 11533 to 11575 points has acted as a strong overhead resistance and led to a sharp intraday weakness from the highs. Immediate downside levels to be watched is 11373 - 11303 points, which could be achieved by short term.

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11472 as on 15.09.2020

For Intraday, Nifty Future has resistance at 11505 – 11517 Point; above which other resistance levels are at 11533 – 11560 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11434 – 11417 Point; below11417 Point, other support levels are at 11404 – 11388 Point.

I am positive for the next bullish trend only above @ 11560 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 @ 11560 Point, again then the upper side target is quite high and it may touch @ 11575 Point in the short term

Bank Nifty Future opened @ 22195 as on 15.09.2020

For Intraday, Bank Nifty Future has resistance at 22272 – 22303 Point; above which other resistance levels are at 22373 – 22404 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 22088 – 22008 Point; below22008 Point, other support levels are at 21930 – 21888 Point.

I am positive for the next bullish trend only above @ 22404 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 @ 22404 Point, again then the upper side target is quite high and it may touch @ 22440 Point in the short term

Trading Idea for the derivative stocks….

DIVIS LAB FO @ RS 3180

Positive Trend @ Rs 3180 / 3160 with Stop loss of Rs @ 3140 for the target near @ Rs 3203 - 3220 in short term

BPCL FO @ RS 419

Positive Trend @ Rs 419 / 409 with Stop loss of Rs @ 400 for the target near @ Rs 433 - 440 in short term

AURO PHARMA FO @ RS 802

Positive Trend @ Rs 802 / 787 with Stop loss of Rs @ 780 for the target near @ Rs 818 - 830 in short term

RELIANCE IND. FO @ RS 2308

Positive Trend @ Rs 2308 / 2288 with Stop loss of Rs @ 2280 for the target near @ Rs 2323 - 2330 in short term

KOTAK BANK FO @ RS 1310

Negative Trend @ Rs 1310 / 1323 with Stop loss of Rs @ 1330 for the target near @ Rs 1293 – 1280 in short term

TECHM FO @ RS 798

Negative Trend @ Rs 798 / 808 with Stop loss of Rs @ 818 for the target near @ Rs 783 – 787 in short term

AXIS BANK FO @ RS 442

Negative Trend @ Rs 442 / 450 with Stop loss of Rs @ 457 for the target near @ Rs 430 – 426 in short term

INDIGO FO @ RS 1330

Negative Trend @ Rs 1330 / 1340 with Stop loss of Rs @ 1350 for the target near @ Rs 1313 – 1303 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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