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Stock Market Daily Updates: 27 Oct 2020

Despite volatility, the option data indicated that the Nifty future could see an immediate trading range of 11707 -11818 level. The Nifty future has to continue to hold above 11818 point to witness an up move towards 11833 then 11888 levels while on the downside key support exists at 11707 then 11676 levels.

Photo Credit :

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Dear Trader…

The Indian stock market started trading rally with a sell-off as expected softness. Derivatives October futures in the F&O segment are set to expire this week, as well as signs of a downturn in global markets and a negative impact on market sentiment by the second wave of Corona cases in the US, European countries are on the rise again as tensions between the US and China escalates due to delays in the economic package and despite signs of more stimulus measures by the central government,

The world is still reeling under the COVID-19 pandemic, with a second wave making an appearance. The impact of the initial economic stimulus announcements is waning and all eyes now are on what’s next to aid the economy. Progress on this front is slow. US lawmakers are discussing a fresh stimulus though many doubt they will agree on new measures before the presidential elections scheduled on November 3.

Even so, most agree that a fresh round of stimulus will be announced at some time. Incoming data meanwhile indicates continuing economic recovery. The number of Americans applying for unemployment benefits dropped significantly.

The weekly price action formed a bull candle which maintained higher high-low signaling continuation of the up move. The market is not showing any solid direction at present and amid volatility, Volatility is expected to remain high in the coming days on account of the US election and Monthly F&O expiry contracts in the Indian stock market so much caution will be

required to follow the index based boom. However, we believe the overall structure in the index remain positive as it has recently witnessed a faster retracement of the last falling segment as four sessions decline was completely retraced in just two sessions.

The move by local stock exchanges is likely to be based on companies' second-quarter results and global developments. FIIs are constantly being sold in the market by local funds against the purchase, so that the focus of investors will be on the US presidential election process.

Ongoing corporate results indicate mixed demand trends in the domestic economy. Companies are benefiting from cost rationalization measures but demand is largely driven by rural and semi-urban centers. Sustained government support can strengthen the pace of the recovery.

India VIX moved up by 4.6 percent from 21.82 to 22.83 levels, the selling pressure amid volatility may continue if the Nifty future breaks its recent corrective swing low of 11707 levels, For the time, positional traders should short rallies into 11676 -11630 levels and look for a bigger target of 11606 levels with a stop above 11888 on a closing basis,

Despite volatility, the option data indicated that the Nifty future could see an immediate trading range of 11707 -11818 level.

The Nifty future has to continue to hold above 11818 point to witness an up move towards 11833 then 11888 levels while on the downside key support exists at 11707 then 11676 levels.

Dear Traders…. For the Trading Idea of…

Ø Nifty Future opened @ 11810 as on 27.10.2020..!!

For Intraday, Nifty Future has resistance at 11833 – 11848 Point; above which other resistance levels are at 11860 – 11888 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11787 – 11760 Point; below 11760 Point, other support levels are at 11733 – 11707 Point.

I am positive for the next bullish trend only above @ 11833 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 @ 11833 Point, again then the upper side target is quite high and it may touch @ 11848 Point in the short term...!!!

Ø Bank Nifty Future opened @ 24311 as on 27.10.2020..!!

For Intraday, Bank Nifty Future has resistance at 24373 – 24404 Point; above which other resistance levels are at 24434 – 24474 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 24240 – 24188 Point; below 24188 Point, other support levels are at 24088 – 23808 Point.

I am positive for the next bullish trend only above @ 24474 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 @ 24474 Point, again then the upper side target is quite high and it may touch @ 24505 Point in the short term...!!

Ø Trading Idea for the derivative stocks….

Ø ACC LTD FO @ RS 1591

Positive Trend @ Rs 1591 / 1577 with Stop loss of Rs @ 1560 for the target near @ Rs 1606 - 1620 in short term…..!!!

Ø CIPLA LTD FO @ RS 748

Positive Trend @ Rs 748 / 737 with Stop loss of Rs @ 730 for the target near @ Rs 763 - 777 in short term…..!!!

Ø BIOCON LTD FO @ RS 403

Positive Trend @ Rs 403 / 393 with Stop loss of Rs @ 386 for the target near @ Rs 414 - 422 in short term…..!!!

Ø WIPRO LTD FO @ RS 336

Positive Trend @ Rs 336 / 330 with Stop loss of Rs @ 326 for the target near @ Rs 344 - 350 in short term…..!!!

Ø RELIANCE IND. FO @ RS 2033

Negative Trend @ Rs 2033 / 2053 with Stop loss of Rs @ 2060 for the target near @ Rs 2017 – 2002 in short term...!!!

Ø GODREJ PROPERTIES FO @ RS 1017

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

Ø LARSEN LTD FO @ RS 960

Negative Trend @ Rs 960 / 988 with Stop loss of Rs @ 994 for the target near @ Rs 946 – 940 in short term...!!!

Ø INDUSIND BANK FO @ RS 611

Negative Trend @ Rs 611 / 626 with Stop loss of Rs @ 630 for the target near @ Rs 597 – 590 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.


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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