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Stock Market Daily Updates: 19 Aug 2020

The first quarter saw negative growth in companies' performance as a result of Corona. The future of the market will depend on how long this growth lasts in the second quarter.

Photo Credit :

1595910044_uDKqsY_2020_07_28T041635Z_1_LYNXNPEG6R08J_RTROPTP_4_GLOBAL_MARKETS.JPG

Dear Trader…

With the monsoon being very successful in the country this year, good rains are expected in many parts of the country and high growth in agriculture is expected and Indian stock markets rallied, with China now patenting its vaccine and various Pharma companies announcing drug discovery, following Russia's first announcement of a vaccine in the world's ongoing efforts to find vaccines and drugs against the Corona epidemic.

With the massive stimulus package announced by many countries in the wake of the Corona epidemic, more emphasis will be placed on the infrastructure sector to get the economy back on track.

The Indian stock market rallied yesterday on the back of an improvement in the price of infrastructure stocks amid the possibility of further announcements by the Prime Minister.

Friends, The market is currently going through a consolidation phase and it will be important to see to what extent the weak economic data is now stable. The run in equities slowed as global gold saw an improvement in prices from lower levels again.The liquidity that arose after the package announced by various banks is now declining and with it the fluctuations in the global stock market including India have been in a narrow range.

The first quarter saw negative growth in companies' performance as a result of Corona. The future of the market will depend on how long this growth lasts in the second quarter.

Globally, in addition to the US, the governments of Japan and China are also seen to be putting a brake on the new package. Liquidity will depend on whether a new package for Corona is announced by the US in the coming days.

The short-term trend continues to be positive but traders may caution. The Nifty can encounter another overhead resistance around 11474 – 11505 points in the next few sessions and there is a possibility of another round of profit-booking from the highs by the weekend or by next week. Immediate support is now shifted to 11373 – 11303 points.

Once the Nifty manages to sustain above 11474 points, then it can strengthen the bullish sentiment and can open up much bigger targets. After this breakout, 11303 points remains a critical short-term support level.

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11436 as on 19.08.2020

For Intraday, Nifty Future has resistance at 11460 – 11488 Point; above which other resistance levels are at 11505 – 11530 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11414 – 11388 Point; below 11388 Point, other support levels are at 11360 – 11330 Point.

I am positive for the next bullish trend only above @ 11530 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 @ 11530 Point, again then the upper side target is quite high and it may touch @ 11560 Point in the short term

Bank Nifty Future opened @ 22293 as on 19.08.2020 

For Intraday, Bank Nifty Future has resistance at 22303 – 22373 Point; above which other resistance levels are at 22390 – 22404 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 22260 – 22230 Point; below 22230 Point, other support levels are at 22202 – 22120 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….

MUTHOOT FIN. FO @ RS 1247

Positive Trend @ Rs 1247 / 1230 with Stop loss of Rs @ 1212 for the target near @ Rs 1263 - 1270 in short term 

LUPIN LTD FO @ RS 991

Positive Trend @ Rs 991 / 980 with Stop loss of Rs @ 970 for the target near @ Rs 1008 - 1017 in short term 

M & M FO @ RS 625

Positive Trend @ Rs 625 / 617 with Stop loss of Rs @ 609 for the target near @ Rs 638 - 650 in short term 

BIOCON LTD FO @ RS 398

Positive Trend @ Rs 398 / 388 with Stop loss of Rs @ 380 for the target near @ Rs 408 - 416 in short term 

ACC LTD FO @ RS 1444

Negative Trend @ Rs 1444 / 1455 with Stop loss of Rs @ 1466 for the target near @ Rs 1430 – 1418 in short term

KOTAK BANK FO @ RS 1373

Negative Trend @ Rs 1375 / 1388 with Stop loss of Rs @ 1393 for the target near @ Rs 1357 – 1340 in short term 

INDIGO FO @ RS 1209

Negative Trend @ Rs 1209 / 1220 with Stop loss of Rs @ 1233 for the target near @ Rs 1193 – 1180 in short term 

HDFC BANK FO @ RS 1063

Negative Trend @ Rs 1063 / 1070 with Stop loss of Rs @ 1084 for the target near @ Rs 1047 – 1033 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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