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Stock Market Daily Updates: 21 August 2020

The market volatility is likely to continue as traders remain cautious over the uncertainty regarding the global economic recovery

Photo Credit :

1595910044_uDKqsY_2020_07_28T041635Z_1_LYNXNPEG6R08J_RTROPTP_4_GLOBAL_MARKETS.JPG

Dear Trader…

Yesterday, Global markets saw a decline after the US Federal Reserve spoke of disappointing economic trends and a recessionary economic outlook ahead of its meeting, which also had an impact on local markets, with the Indian stock market witnessed a decline on the back of negative signals from global markets on concerns of a global economic downturn due to a worrying rise in the transition of corona around the world, Locally, it is most prevalent in the rural areas of Corona in July and August.

On the fifth day of the week, the Indian stock market started trading with a positive trend. According to the State Bank of India's research report, the country's GDP is expected to grow at a negative rate of 16.5% in the April-June quarter, which will have a far-reaching impact as the number of new cases in rural areas increases.

The market volatility is likely to continue as traders remain cautious over the uncertainty regarding the global economic recovery, fresh US economic relief, the fallout of US-China tensions and worsening corona virus crisis, traders should be focus more on the selection of stocks and trade management citing overnight risk and keep the strategy to buy fundamental specific stocks on every dips.

Friends, After Corona's economic impact, domestic and foreign stock markets crashed sharply in the early days but are now recovering. Amid the current uncertain environment, investors are paying more attention to investing in gold. Not only does the government want a complete overhaul of the banking sector, it is also keen to push for the privatization of banks. The government wants to raise money through various sources as there is a shortage of revenue in the government offers due to corona virus.

The PMO has instructed the concerned authorities to expedite the process of reducing the government's stake in the country's public sector banks. The government intends to reduce its stake in at least four banks in the current financial year. Corona's economic impact has led to an increase in bad loans from banks and an impact on profits in the banking sector, making it difficult for the government to sell its stake.

According to trading idea, Traders should remain neutral and not add long positions till stability of the trend; Nifty’s short-term trend is slightly negative. Overall uptrend status will remain intact as long as 11272 point is protected. There is a possibility of minor weakness in the next one or two sessions with a range bound action, In line with global markets, both the Sensex and the Nifty50 witnessed a vertical fall but buying at lower levels helped them close above crucial support levels. The key support level for the Nifty future is placed at 11272 points, If the index moves up, the key resistance levels to watch out for 11373 to 11404 points. We reiterate our view to focus more on the selection of stocks and trade management citing overnight risk.

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11394 as on 21.08.2020

For Intraday, Nifty Future has resistance at 11404 – 11414Point; above which other resistance levels are at 11440 – 11460 Point with highly Volatile Trend.

Nifty Future has Downside support levels are at 11373 – 11360 Point; below 11360 Point, other support levels are at 11333 – 11303 Point.

I am positive for the next bullish trend only above @ 11404 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 @ 11404 Point, again then the upper side target is quite high and it may touch @ 11414 Point in the short term

Bank Nifty Future opened @ 22155 as on 21.08.2020

For Intraday, Bank Nifty Future has resistance at 22188 – 22220 Point; above which other resistance levels are at 22272 – 22303 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 22101 – 22008 Point; below 22008 Point, other support levels are at 21970 – 21909 Point.

I am positive for the next bullish trend only above @ 22303 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 @ 22303 Point, again then the upper side target is quite high and it may touch @ 22373 Point in the short term

Trading Idea for the derivative stocks….

HDFC LTD FO @ RS 1796

 Positive Trend @ Rs 1796 / 1787 with Stop loss of Rs @ 1780 for the target near @ Rs 1812 - 1820 in short term 

ACC LTD FO @ RS 1428

Positive Trend @ Rs 1428 / 1414 with Stop loss of Rs @ 1408 for the target near @ Rs 1444 - 1450 in short term 

INFOSYS FO @ RS 963

Positive Trend @ Rs 963 / 950 with Stop loss of Rs @ 947 for the target near @ Rs 973 - 980 in short term 

TATA STEEL FO @ RS 437

Positive Trend @ Rs 437 / 430 with Stop loss of Rs @ 422 for the target near @ Rs 453 - 460 in short term 

INDIGO FO @ RS 1214

Negative Trend @ Rs 1214 / 1230 with Stop loss of Rs @ 1237 for the target near @ Rs 1190 – 1177 in short term 

CIPLA LTD FO @ RS 770

Negative Trend @ Rs 770 / 783 with Stop loss of Rs @ 790 for the target near @ Rs 757 – 750 in short term

GRASIM IND. FO @ RS 671

Negative Trend @ Rs 671 / 677 with Stop loss of Rs @ 684 for the target near @ Rs 660 – 653 in short term

AXIS BANK FO @ RS 440

Negative Trend @ Rs 440 / 447 with Stop loss of Rs @ 454 for the target near @ Rs 428 – 418 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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