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Stock Market Daily Updates: 28 Oct 2020

Some consolidation as far as Nifty future levels are concerned, technically, on the higher side resistance is placed at around 11919 – 11933 points of the immediate swing high and extend the up move towards 11989 levels amid stock specific activity ahead of the Q2FY21 result session, while on the downside, major support exists at 11833 then 11808 points.

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Dear Trader…

The Indian stock market started trading with a recovery from the lows after a significant decline on Monday. Kotak Bank's September quarterly results hit an encouraging profit of Rs 2184.5 crore in the Indian stock market, despite a softening in markets in the US and Europe amid a resurgence of corona virus cases and re-lockdown measures in European countries.

Indian stock markets rallied led by Morgan Stanley Capital Investment (MSCI) said on October 27 it will tweak the foreign ownership limits for India stocks in its global indexes from December 1. Forecast of higher FII inflows into India, based on the MSCI report, helped the market to strongly outperform despite a weak global market.

The sustenance of such a trend is low given increasing concerns over the worsening spread of viruses in the West, which has weakened their markets for further correction.

Most of the companies have now reached pre-lockdown operations and the Indian stock market is witnessing a steady upswing as good rains in many parts of the country this year are expected to have a positive impact on the agro-rural economy.

The central government is making every effort to save the country's economy from the Corona crisis. The government is currently working on a third relief package. This time the government can invest in affiliated companies instead of investing directly in urban employment schemes.

The government may announce a relief package for the industry that has been hit the hardest by the Corona virus epidemic.

The government can promote the infrastructure sector along with urban projects under this package. It can also directly help the hospitality as well as the tourism sector. The government had earlier announced an incentive package after the lockdown began in late March 2020.

In the coming days, with the Assembly elections starting in Bihar from today, October 28, the global front will be watching the elections to be held in the United States on November 3. In Europe,

The European Central Bank's (ECB) decision on interest rates on October 29, 2020 and the interest rates to be announced by the Bank of Japan will be watched by the Indian stock market along with global markets.

The rebound in the Nifty indicates that the prevailing consolidation phase will continue and we might have to wait for the next directional move. Markets are offering trading opportunities across the stocks and traders should proactively manage their positions in such a scenario.

Corporate India's quarterly results for the end of September 2020 will be released on October 28 by Hero Moto, Dr. Reddy's Laboratories, Larsen & Toubro and Titan.

In the coming days, The Indian market is expected to follow with an increase in volatility as we head close to the US election and more economic restrictions due to the devastating rise in corona virus cases.

Some consolidation as far as Nifty future levels are concerned, technically, on the higher side resistance is placed at around 11919 – 11933 points of the immediate swing high and extend the up move towards 11989 levels amid stock specific activity ahead of the Q2FY21 result session, while on the downside, major support exists at 11833 then 11808 points.

Dear Traders…. For the Trading Idea of…

Ø Nifty Future opened @ 11881 as on 28.10.2020..!!

For Intraday, Nifty Future has resistance at 11909 – 11919 Point; above which other resistance levels are at 11933 – 11960 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11833 – 11818 Point; below 11818 Point, other support levels are at 11808 – 11770 Point.

I am positive for the next bullish trend only above @ 11933 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 @ 11933 Point, again then the upper side target is quite high and it may touch @ 11960 Point in the short term...!!!

Ø Bank Nifty Future opened @ 23698 as on 28.10.2020..!!

For Intraday, Bank Nifty Future has resistance at 24770 – 24838 Point; above which other resistance levels are at 24909 – 25008 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 24606 – 24575 Point; below 24575 Point, other support levels are at 24505 – 24373 Point.

I am positive for the next bullish trend only above @ 25008 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 @ 25008 Point, again then the upper side target is quite high and it may touch @ 25250 Point in the short term...!!

Ø Trading Idea for the derivative stocks….

Ø DIVIS LAB FO @ RS 3157

Positive Trend @ Rs 3157 / 3130 with Stop loss of Rs @ 3108 for the target near @ Rs 3188 - 3208 in short term…..!!!

Ø MUTHOOT FINANCE FO @ RS 1224

Positive Trend @ Rs 1224 / 1208 with Stop loss of Rs @ 1188 for the target near @ Rs 1244 - 1250 in short term…..!!!

Ø INFOSYS FO @ RS 1094

Positive Trend @ Rs 1094 / 1082 with Stop loss of Rs @ 1077 for the target near @ Rs 1118 - 1140 in short term…..!!!

Ø GODREJ PROPERTIES FO @ RS 1009

Positive Trend @ Rs 1009 / 997 with Stop loss of Rs @ 990 for the target near @ Rs 1027 - 1044 in short term…..!!!

Ø HDFC LTD FO @ RS 2041

Negative Trend @ Rs 2041 / 2066 with Stop loss of Rs @ 2080 for the target near @ Rs 2027 – 2018 in short term...!!!

Ø HDFC BANK FO @ RS 1230

Negative Trend @ Rs 1230 / 1244 with Stop loss of Rs @ 1250 for the target near @ Rs 1218 – 1208 in short term...!!!

Ø LARSEN LTD FO @ RS 990

Negative Trend @ Rs 990 / 1013 with Stop loss of Rs @ 1020 for the target near @ Rs 977 – 970 in short term...!!!

Ø INDUSIND BANK FO @ RS 615

Negative Trend @ Rs 615 / 633 with Stop loss of Rs @ 640 for the target near @ Rs 606 – 597 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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