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Stock Market Daily Updates: 23 Sep 2020

Markets seem to be consolidating and taking stock of the situation. traders are advised to stay cautious and focus more on risk management as we expect volatility to remain high due to scheduled derivatives while some bounce cannot be ruled out……..

Photo Credit :

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Dear Trader…

The Indian stock market witnessed another day of volatility as concerns over the second wave of virus infection weighed down market sentiment also foreign funds cautiously offloaded stocks.

As the world struggles to recover from the outbreak of corona virus, no concrete vaccine has yet been discovered. The second wave of infections in Europe and other countries has raised fear of re-imposition of lockdown.

In such a scenario, markets will continue to take cues from global peers.

Friends, the market is not showing any solid direction at present and amid uncertainty, volatility in the Indian stock market may increase in the coming days due to the September expiry of futures and options contracts. 

Tensions are rising on the border between India and China, which is a growing concern in the market. From the China border or any other global events can also affect the Indian stock market. 

Profit booking is being seen as valuations are high in the market.FII purchases have been selling steadily in the market recently through local funds. As the redemption pressure increased in July and August, the trend has been to book profits. 

Europe may raise concerns in global markets in the near future. Corona care has increased in Europe and in this case there has been polarization. One large class is demanding lockdown again while another class is demanding unlock. Globally, as the US election approaches, there is a huge volatility in the markets. In the coming days, its impact on the Indian stock market and other markets can be seen.

Markets seem to be consolidating and taking stock of the situation. traders are advised to stay cautious and focus more on risk management as we expect volatility to remain high due to scheduled derivatives while some bounce cannot be ruled out, Nifty future seems to be headed to 11008 points over the next few sessions even as lack of positive triggers and prevalence of negative or concerning news continue to impact risk-on sentiments.

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.

The current trend is in favor of bears and such bounces may become fertile grounds for bears to make fresh attacks. In case if the support of 11088 point, on a closing basis, is breached then one should prepare for a bigger correction while the initial target may remain to test its 200-day exponential moving average whose value is placed around 10880 point while on the upside medium-term hurdle is shifting lower to 11303 to 11330 point.

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11237 as on 23.09.2020

For Intraday, Nifty Future has resistance at 11272 – 11303 Point; above which other resistance levels are at 11330 – 11373 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11207 – 11173 Point; below11173 Point, other support levels are at 11133 – 11101 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 @ 21350 as on 23.09.2020

For Intraday, Bank Nifty Future has resistance at 21373 – 21404 Point; above which other resistance levels are at 21474 – 21505 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 21272 – 21232 Point; below21232 Point, other support levels are at 21202 – 21180 Point.

I am positive for the next bullish trend only above @ 21505 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 @ 21505 Point, again then the upper side target is quite high and it may touch @ 21533 Point in the short term

Trading Idea for the derivative stocks….

ACC LTD FO @ RS 1350

Positive Trend @ Rs 1350 / 1330 with Stop loss of Rs @ 1313 for the target near @ Rs 1373 - 1380 in short term

MUTHOOT FIN. FO @ RS 1014

Positive Trend @ Rs 1014 / 1003 with Stop loss of Rs @ 990 for the target near @ Rs 1033 - 1050 in short term

TATA STEEL FO @ RS 365

Positive Trend @ Rs 365 / 355 with Stop loss of Rs @ 347 for the target near @ Rs 373 - 380 in short term

TECHM FO @ RS 803

Positive Trend @ Rs 803 / 796 with Stop loss of Rs @ 790 for the target near @ Rs 818 - 830 in short term

INFOSYS FO @ RS 1033

Negative Trend @ Rs 1033 / 1044 with Stop loss of Rs @ 1050 for the target near @ Rs 1018 – 1008 in short term

GRASIM IND. FO @ RS 728

Negative Trend @ Rs 728 / 738 with Stop loss of Rs @ 744 for the target near @ Rs 717 – 708 in short term

BHARTI AIRTEL FO @ RS 463

Negative Trend @ Rs 463 / 473 with Stop loss of Rs @ 484 for the target near @ Rs 447 – 440 in short term

BPCL FO @ RS 397

Negative Trend @ Rs 397 / 408 with Stop loss of Rs @ 422 for the target near @ Rs 388 – 380 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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