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Stock Market Daily Updates: 28 Sep 2020

The only hope for a correction in the market is the flow of liquidity. Further correction in the stock market is likely to be seen in the coming days following the adverse effects of Corona. After that, given the strong liquidity from foreign and domestic funds, the market is likely to rebound.

Photo Credit :

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Dear Trader…

On expectations of a stimulus package ahead, the Indian stock market started off the October series on a strong positive trend, as the Nifty future rebounded after a steep correction from 10850 point and extended the rally to close above the psychologically important level of 11033 point on September 25.

India VIX fell by 12.06 percent from 23.51 to 20.67 levels, which also gave comfort for a bounce-back move strong rally in trading session from around its 200-day moving average is hinting that a temporary bottom may be in place around 10808 point.

The September series was negative for derivatives traders and Investors , they have lost whopping Rs 11.31 crore in last six days.The market does not seem to be moving in the right direction at the moment and there are reports of rising tensions on the border between India and China, which is causing concern in the market. Profit booking is being seen as valuations are high in the market. Local funds have been selling steadily in the market recently against FII purchases. As the redemption pressure increased in July and August, local mutual funds have tended to book stock-specific profits.

The country's banks are likely to restructure loans worth Rs 2 trillion as many borrowers are unable to repay their loans on time due to the economic impact of Covid-19. Demand for restructuring is also now becoming necessary in view of the rapid recovery in the economy after the lockdown was eased. The most severely affected areas in the country due to corona include aviation, hotels, real estate and retail. The real estate sector has been struggling for the last four to five years and Corona has made their situation worse.

According to a quarterly report released by the Finance Ministry's Economic Affairs Department, for the first time in the country, the central government's debt ceiling has increased by Rs 7 trillion to over Rs 100 trillion in the first quarter of the current financial year, April-June. India is currently ranked 94th out of 170 countries in terms of debt. Debt is currently 3% of India's GDP, but is expected to rise to 60% by the end of FY2021. In the current financial year, the government has raised the target for raising money from the market through loans, which it had set at Rs 7.80 trillion in the budget, to Rs 12 trillion.

At the local level, India's first major agricultural reform bill was passed in both Houses of Parliament amid opposition protests. Options contracts saw heavy profit bookings due to the September expiration.

Friends, the country’s economy have been disrupted but the capital markets are currently looking strong. Following the recent overwhelming response to the IPO of stocks, including Happy Mind and Root Mobile, in the Indian capital market, an estimated 80 companies plan to raise more than Rs 50,000 crore through equity sales in the current financial year. Such a large number of IPOs are coming even when the country's economic growth rate has been hit by the Corona.

With the monsoon being very successful in the country, the rural economy is also projected to grow rapidly in the coming days with high growth in the agricultural sector.

Of course, any major positive development could increase or decrease the attractiveness of foreign funds in the Indian stock market with global markets, given the good progress being made in the search for the corona vaccine and signs of further success in vaccine trials in the coming days.

The only hope for a correction in the market is the flow of liquidity. Further correction in the stock market is likely to be seen in the coming days following the adverse effects of Corona. After that, given the strong liquidity from foreign and domestic funds, the market is likely to rebound.


Dear Traders…. For the Trading Idea of…

Ø  Nifty Future opened @ 11123 as on 28.09.2020..!!

For Intraday, Nifty Future has resistance at 11147 – 11160 Point; above which other resistance levels are at 11188 – 11202 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11101 – 11088 Point; below11088 Point, other support levels are at 11033 – 11008 Point.

I am positive for the next bullish trend only above @ 11188 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 @ 11188 Point, again then the upper side target is quite high and it may touch @ 11202 Point in the short term...!!!


ØBank Nifty Future opened @ 21100 as on 28.09.2020..!!

For Intraday, Bank Nifty Future has resistance at 21188 – 21202 Point; above which other resistance levels are at 21288 – 21330 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 21008 – 20979 Point; below20979 Point, other support levels are at 20880 – 20808 Point.

I am positive for the next bullish trend only above @ 21330 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 @ 21330 Point, again then the upper side target is quite high and it may touch @ 21373 Point in the short term...!!


Ø Trading Idea for the derivative stocks….


Ø INFOSYS FO @ RS 994

Positive Trend @ Rs 994 / 980 with Stop loss of Rs @ 970 for the target near @ Rs 1013 - 1020 in short term…..!!!


Ø CIPLA LTD FO @ RS 764

Positive Trend @ Rs 764 / 757 with Stop loss of Rs @ 750 for the target near @ Rs 783 - 790 in short term…..!!!


Ø GRASIM IND. FO @ RS 719

Positive Trend @ Rs 719 / 703 with Stop loss of Rs @ 696 for the target near @ Rs 733 - 744 in short term…..!!!


Ø BIOCON LTD FO @ RS 430

Positive Trend @ Rs 430 / 417 with Stop loss of Rs @ 408 for the target near @ Rs 444 - 450 in short term…..!!!


Ø MUTHOOT FIN. FO @ RS 1109

Negative Trend @ Rs 1109 / 1130 with Stop loss of Rs @ 1144 for the target near @ Rs 1097 – 1088 in short term...!!!


Ø LUPIN LTD FO @ RS 1011

Negative Trend @ Rs 1011 / 1033 with Stop loss of Rs @ 1040 for the target near @ Rs 997 – 988 in short term...!!!


Ø AURO PHARMA FO @ RS 787

Negative Trend @ Rs 787 / 808 with Stop loss of Rs @ 818 for the target near @ Rs 777 – 770 in short term...!!!


Ø AXIS BANK FO @ RS 424

Negative Trend @ Rs 424 / 444 with Stop loss of Rs @ 450 for the target near @ Rs 412 – 407 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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