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Stock Market Daily Updates: 22 Sep 2020

On the technical, the short term trend on the Nifty future remains volatile, with a minor positive bias. Immediate resistance to be watched at 11303 points in Nifty future, with short term lower support placed at 11101 - 11088 points, the strategy should be to long in fundamental stocks on dips.

Photo Credit :

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Dear Trader…

On the first day of the week, the Indian stock market started trading with a modest decline with some European countries considering a second lockdown in the UK by British Prime Minister Boris Johnson in the case of COVID-19 and reports from HSBC and Standard Chartered, 

Weak global signals and growing fears of a COVID-19 case at the local level are expected to increase worldwide in the coming days. The MSCI world equity index, which tracks shares in 49 countries, was down 0.8 percent at 1113 GMT. European indexes fell sharply, with the pan-European STOXX 600 down 2.7 percent, its lowest since the start of August. London's FTSE 100 was at a two-week low, down 3.3 percent and Germany's DAX fell 3.2 percent.

European countries including Denmark, Greece and Spain have introduced new restrictions on activity. Britain is considering a second national lockdown as new cases rise by at least 6,000 per day. Germany's health minister said rising new infections in countries like France, Austria and the Netherlands is worrying, In the last two hours of the trading session, strong profit bookings by funds in banking-finance, telecom and realty stocks according to reports and estimates of lengthening the moratorium of bank loans and with it interest and interest waiver.

Friends, the situation has become a major cause of concern for the global recession, with some countries taking re-lockdown measures as they consider withdrawing unlock concessions from the worrying rise of the Corona transition around the world. Of course, in the midst of this situation, rising unemployment in India and the deteriorating state of industry, the government is again demanding a bigger economic package. But amid falling tax revenues in the country and fears of a recession, business sentiment has been shaken by a sharp drop in advance tax payments and rising demand for financial aid from states with declining revenues has also posed a number of challenges for the central government. 

Any such decision on the economic front could affect market sentiment. So in the coming days, the economy and the Indian stock market may see a major upheaval. Markets were also hit by a media report on how several global banks moved large sums of allegedly illicit funds over nearly two decades. Banking shares slid after the report and HSBC shares sunk to a 25-year low in Hong Kong.

Investors and traders will be looking ahead to flash PMI data on Wednesday for the first hints of how economies have fared in September. At this stage, in addition to the status of the Corona case, geopolitical tensions and weak global market will be a key issue for India to monitor the movement of the Indian stock market.

On the technical, the short term trend on the Nifty future remains volatile, with a minor positive bias. Immediate resistance to be watched at 11303 points in Nifty future, with short term lower support placed at 11101 - 11088 points, the strategy should be to long in fundamental stocks on dips.

Dear Traders…. For the Trading Idea of…

Ø  Nifty Future opened @ 11282 as on 22.09.2020..!!

For Intraday, Nifty Future has resistance at 11303 – 11330 Point; above which other resistance levels are at 11373 – 11404 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11232 – 11202 Point; below11202 Point, other support levels are at 11173 – 11130 Point.

I am positive for the next bullish trend only above @ 11330 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 @ 11330 Point, again then the upper side target is quite high and it may touch @ 11373 Point in the short term...!!!

Bank Nifty Future opened @ 21389 as on 22.09.2020..!!

For Intraday, Bank Nifty Future has resistance at 21404 – 21474 Point; above which other resistance levels are at 21505 – 21575 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 21303 – 21262 Point; below21262 Point, other support levels are at 21202 – 21160 Point.

I am positive for the next bullish trend only above @ 21474 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 @ 21474 Point, again then the upper side target is quite high and it may touch @ 21505 Point in the short term...!!

Ø Trading Idea for the derivative stocks….

Ø LUPIN LTD FO @ RS 1024

Positive Trend @ Rs 1024 / 1013 with Stop loss of Rs @ 1007 for the target near @ Rs 1047 - 1060 in short term

Ø LARSEN LTD FO @ RS 867

Positive Trend @ Rs 867 / 853 with Stop loss of Rs @ 844 for the target near @ Rs 883 - 890 in short term

Ø MAHINDRA & MAHINDRA FO @ RS 606

Positive Trend @ Rs 606 / 596 with Stop loss of Rs @ 588 for the target near @ Rs 624 - 630 in short term…..!!!

Ø GLENMARK PHARMA FO @ RS 444

Positive Trend @ Rs 444 / 422 with Stop loss of Rs @ 414 for the target near @ Rs 463 - 470 in short term

Ø KOTAK BANK FO @ RS 1290

Negative Trend @ Rs 1290 / 1308 with Stop loss of Rs @ 1320 for the target near @ Rs 1277 – 1264 in short term

Ø CIPLA LTD FO @ RS 773

Negative Trend @ Rs 773 / 787 with Stop loss of Rs @ 794 for the target near @ Rs 760 – 747 in short term

Ø BPCL FO @ RS 400

Negative Trend @ Rs 400 / 414 with Stop loss of Rs @ 424 for the target near @ Rs 388 – 380 in short term

Ø ADANI PORT FO @ RS 341

Negative Trend @ Rs 341 / 353 with Stop loss of Rs @ 360 for the target near @ Rs 336 – 327 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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