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Stock Market Daily Updates: 16 Oct 2020

Nifty Future has Downside support levels are at 11688 – 11660 Point; below 11660 Point, other support levels are at 11633 – 11606 Point.

Photo Credit :

1600143250_emsKxg_2020_09_15T041203Z_1_LYNXMPEG8E08O_RTROPTP_4_INDIA_STOCKS.JPG

Dear Trader…

The Indian stock market started strong, but on the global front, the transition to Corona was deteriorating again and with the weak economic results of banks in the US approaching, the Indian stock market also saw a sell-off on higher level of Nifty.

The texture of the market has changed from a ‘buy on dips’ to a ‘sell on rallies’ market after benchmark indices fell by more than 2 percent each on October 15. The correction was triggered by fading hopes of further stimulus in the US and reports of fresh lockdowns in Europe which added to weak sentiment across equities globally.

Despite Wipro's results and corporate mega buyback after TCS in corporate results, profit-booking of funds in IT-Software Services stocks and sustained funds in healthcare-pharma stocks eased their overbought positions. .

The number of gross non-performing assets in the country's banking system is expected to rise to 11 to 11.50% by March due to one-time restructuring of loans under pressure due to corona virus. Care ratings estimate that 4 to 5% of existing loans may come under stress.

Gross NPAs stood at 8.20% in the first quarter of the current financial year as against 9.50% in the first quarter of the last financial year. After the loan recall, India will be the third largest borrower in the world after Greece and Russia, the report said. Smaller countries with higher bad loans include Ukraine, Cyprus, Ghana and Kenya. The number of bad loans in the country's banking system was as high as Rs 10.20 lakh crore in the fourth quarter of FY18, which declined to Rs 8.40 lakh crore in the first quarter of FY2021.

Crucial support for the Nifty is placed at 11688 -11660 levels. Any rallies could be used to go short due to weak global cues seems to have triggered profit booking in India too with banks & IT stocks facing intense selling pressure.

Now the immediate structure has changed and till it doesn’t cross and hold above 11808 level, weakness could be seen towards the next key support at 11606 points while on the upside hurdles are seen at 11818 and 11833 levels.

Dear Traders…. For the Trading Idea of…

Ø Nifty Future opened @ 11721 as on 16.10.2020..!!

For Intraday, Nifty Future has resistance at 11747 – 11770 Point; above which other resistance levels are at 11808 – 11818 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11688 – 11660 Point; below 11660 Point, other support levels are at 11633 – 11606 Point.

I am positive for the next bullish trend only above @ 11808 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 @ 11808 Point, again then the upper side target is quite high and it may touch @ 11818 Point in the short term...!!!

Ø Bank Nifty Future opened @ 23201 as on 16.10.2020..!!

For Intraday, Bank Nifty Future has resistance at 23272 – 23303 Point; above which other resistance levels are at 23373 – 23404 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 23123 – 23023 Point; below 23023 Point, other support levels are at 22909 – 22860 Point.

I am positive for the next bullish trend only above @ 23404 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 @ 23404 Point, again then the upper side target is quite high and it may touch @ 23474 Point in the short term...!!

Ø Trading Idea for the derivative stocks….

Ø ACC LTD FO @ RS 1520

Positive Trend @ Rs 1520 / 1508 with Stop loss of Rs @ 1497 for the target near @ Rs 1533 - 1550 in short term…..!!!

Ø LUPIN LTD FO @ RS 1004

Positive Trend @ Rs 1004 / 990 with Stop loss of Rs @ 977 for the target near @ Rs 1024 - 1030 in short term…..!!!

Ø GODREJ PROPERTIES FO @ RS 855

Positive Trend @ Rs 855 / 838 with Stop loss of Rs @ 828 for the target near @ Rs 873 - 880 in short term…..!!!

Ø MUTHOOT FINANCE FO @ RS 1144

Positive Trend @ Rs 1144 / 1130 with Stop loss of Rs @ 1118 for the target near @ Rs 1163 - 1170 in short term…..!!!

Ø ASIAN PAINT FO @ RS 2084

Negative Trend @ Rs 2084 / 2108 with Stop loss of Rs @ 2120 for the target near @ Rs 2044 – 2020 in short term...!!!

Ø TECHM FO @ RS 824

Negative Trend @ Rs 824 / 833 with Stop loss of Rs @ 840 for the target near @ Rs 818 – 808 in short term...!!!

Ø SUN PHARMA FO @ RS 494

Negative Trend @ Rs 494 / 505 with Stop loss of Rs @ 513 for the target near @ Rs 488 – 480 in short term...!!!

Ø BIOCON LTD FO @ RS 438

Negative Trend @ Rs 438 / 448 with Stop loss of Rs @ 453 for the target near @ Rs 426 – 417 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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