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Stock Market Daily Updates: 18 Sep 2020

The Nifty future has to respect immediate support of 11505 point to witness an up move towards 11588 -11606 point while on the downside, the next major support exists at 11474 -11460 point.

Photo Credit :

1595305653_cBKF5E_2020_07_21T041452Z_1_LYNXNPEG6K07F_RTROPTP_4_INDIA_STOCKS.JPG

Dear Trader…

The bears start to take control of the Indian market from September 17, tracking muted cues across the globe after the US Federal Reserve dashed hopes of an immediate stimulus. Profit-booking at higher levels suggests that the Nifty future is likely to consolidate in a narrow range and the possibility of sell on the rise has increased.

According to data released by the Union Ministry of Commerce and Industry, India's total exports declined by 25.42% from April to June of the current financial year as compared to the first quarter of the last financial year, and the two-day rally in the Indian stock market finally took a break on Thursday as investors remained cautious amid uncertainty amid continuing tensions on the border with China.

Globally, the US Federal Reserve pledged to hold interest rates near zero until at least 2023. The Fed said it would keep interest rates near zero until inflation is on track to “moderately exceed” the central bank’s 2 per cent inflation target “for some time,” with the aim of offsetting years of weak inflation and allowing the economy to add jobs for as long as possible.US shares rose with the Fed’s statement but then reversed gains as Fed Chairman Jerome Powell said the pace of the ongoing economic recovery is expected to slow.

This comes on the back of weak global cues as investors remained concerned about the strength of the recovery from the Covid-19 pandemic.

The US Federal Reserve's failure to live up to investor expectations has been offset by reports that global signals remain weak following the Federal Reserve's expectation of fiscal stimulus, with the Fed forecasting unchanged US interest rates until the end of 2023, but not beyond that. The Indian stock market declined with a negative impact.

Friends, Tensions on the border between India and China remain high. Despite high-level talks between the two countries, the lack of an official statement to reduce tensions will require investors to be prepared for slower progress on the issue.

RBI Governor Shaktikant Das said the RBI is gearing up to fight the recession-ridden economy as well as the banking sector and is taking all necessary steps. India will see its gains in the coming days as crude oil prices fall. Mid-cap and small-cap stocks are likely to see more buying due to SEBI's new circular for mutual funds.

The market is likely to see consolidation in the coming days. we suggest that traders should maintain their focus on the sectors that are attracting buying interest and plan their trades accordingly also traders should away from Nifty & Bank Nifty trade due to Indicator is now turning lower on a daily scale which suggests testing of lower support with consolidative move along with capped upside. The Nifty future has to respect immediate support of 11505 point to witness an up move towards 11588 -11606 point while on the downside, the next major support exists at 11474 -11460 point.

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11575 as on 18.09.2020

For Intraday, Nifty Future has resistance at 11606 – 11616 Point; above which other resistance levels are at 11633 – 11646 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11533 – 11505 Point; below11505 Point, other support levels are at 11474 – 11460 Point.

I am positive for the next bullish trend only above @ 11646 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 @ 11464 Point, again then the upper side target is quite high and it may touch @ 11660 Point in the short term.

Bank Nifty Future opened @ 22391 as on 18.09.2020

For Intraday, Bank Nifty Future has resistance at 22434 – 22474 Point; above which other resistance levels are at 22505 – 22575 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 22303 – 22272 Point; below22272 Point, other support levels are at 22233 – 22202 Point.

I am positive for the next bullish trend only above @ 22757 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 @ 22575 Point, again then the upper side target is quite high and it may touch @ 22606 Point in the short term.

Ø Trading Idea for the derivative stocks….

ACC LTD FO @ RS 1413

Positive Trend @ Rs 1413 / 1404 with Stop loss of Rs @ 1390 for the target near @ Rs 1433 - 1440 in short term

AURO PHARMA FO @ RS 818

Positive Trend @ Rs 818 / 808 with Stop loss of Rs @ 797 for the target near @ Rs 833 – 840 in short term

GRASIM IND. FO @ RS 727

Positive Trend @ Rs 727 / 717 with Stop loss of Rs @ 707 for the target near @ Rs 743 - 750 in short term

SUN PHARMA FO @ RS 518

Positive Trend @ Rs 518 / 505 with Stop loss of Rs @ 496 for the target near @ Rs 524 - 530 in short term

KOTAK BANK FO @ RS 1311

Negative Trend @ Rs 1311 / 1333 with Stop loss of Rs @ 1340 for the target near @ Rs 1297 – 1288 in short term

MUTHOOT FIN. FO @ RS 1133

Negative Trend @ Rs 1133 / 1153 with Stop loss of Rs @ 1160 for the target near @ Rs 1108 – 1096 in short term

INFOSYS FO @ RS 1017

Negative Trend @ Rs 1017 / 1033 with Stop loss of Rs @ 1040 for the target near @ Rs 1003 – 990 in short term

TECHM FO @ RS 801

Negative Trend @ Rs 801 / 818 with Stop loss of Rs @ 830 for the target near @ Rs 790 – 784 in short term

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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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