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Stock Market Daily Updates: 29 Oct 2020

Now, Nifty future has to cross and hold above 11707 levels, to witness an up move towards 11777 then 11808 levels while on the downside, major support at 11606 levels and below that, a fresh round of selling could be seen towards 11588 -11575 levels.

Photo Credit :

1595910044_uDKqsY_2020_07_28T041635Z_1_LYNXNPEG6R08J_RTROPTP_4_GLOBAL_MARKETS.JPG

Dear Trader…

The Indian stock market started trading strongly, but reports of a resurgence of corona cases in the US and trouble in the stimulus package have led to increased offloading from global markets ahead of the US presidential election.

The Indian stock market was under intense pressure with global markets softening, funds began easing their overbought position ahead of the end of the October derivatives. In my opinion, two-way fluctuations in precious metal prices could be seen in the US until next month's election.

The country's economy is recovering slowly but steadily, after the initial rush, we are falling in tandem with the weak global trend as the world’s economic recovery will slow down this quarter with implications for world equities. Domestically, the market is watching the developments in the Bihar assembly election but according to a PTI report, since April this year, Corona has seen a sharp decline in remittances from workers to their respective homes. With Unlock, the situation has been improving since June and July. The survey claimed that the same amount of money sent home by migrant workers in February this year was found in September. Similarly, new registrations were also made in the Provident Fund account, according to the report, the number of Jandhan accounts also increased and the number of accounts exceeded the estimated 41crore.

When the International Monetary Fund projected India's GDP growth at minus 10.3% this year, Finance Minister Nirmala Sitharaman, speaking at an event, acknowledged that India's GDP growth could be around zero this year, but next year among the world's fastest growing economies. India will be counted.

Rising COVID-19 cases globally are worrying investors as a strict lockdown could be imposed and economic recovery which is still at the nascent stage could once again get hit. Further, no stimulus announcement as well as elections in the US, too, is keeping investors on edge.

The scheduled derivative expiry of October month contracts will further add to the volatility. We reiterate our cautious view on markets and suggest continuing with a stock-specific trading approach.

The index has turned highly volatile in the last couple of sessions and got stuck in a wider range where declines were being bought while multiple hurdles are intact at 11808 – 11888 levels. The medium-term trend remains continue to witness volatility.

Now, Nifty future has to cross and hold above 11707 levels, to witness an up move towards 11777 then 11808 levels while on the downside, major support at 11606 levels and below that, a fresh round of selling could be seen towards 11588 -11575 levels.

Dear Traders…. For the Trading Idea of…

Ø Nifty Future opened @ 11630 as on 29.10.2020..!!

For Intraday, Nifty Future has resistance at 11660 – 11676 Point; above which other resistance levels are at 11696 – 11717 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11606 – 11588 Point; below 11588 Point, other support levels are at 11575 – 11550 Point.

I am positive for the next bullish trend only above @ 11717 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 @ 11717 Point, again then the upper side target is quite high and it may touch @ 11733 Point in the short term...!!!

Ø Bank Nifty Future opened @ 23999 as on 29.10.2020..!!

For Intraday, Bank Nifty Future has resistance at 24088 – 24140 Point; above which other resistance levels are at 24272 – 24303 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 23888 – 23808 Point; below 23808 Point, other support levels are at 23737 – 23676 Point.

I am positive for the next bullish trend only above @ 24303 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 @ 24303 Point, again then the upper side target is quite high and it may touch @ 24333 Point in the short term...!!

Ø Trading Idea for the derivative stocks….

Ø ACC LTD FO @ RS 1616

Positive Trend @ Rs 1616 / 1606 with Stop loss of Rs @ 1590 for the target near @ Rs 1633 - 1640 in short term…..!!!

Ø HDFC BANK FO @ RS 1193

Positive Trend @ Rs 1193 / 1180 with Stop loss of Rs @ 1166 for the target near @ Rs 1203 - 1212 in short term…..!!!

Ø MUTHOOT FIN. FO @ RS 1180

Positive Trend @ Rs 1180 / 1166 with Stop loss of Rs @ 1144 for the target near @ Rs 1203 - 1212 in short term…..!!!

Ø GRASIM IND. FO @ RS 773

Positive Trend @ Rs 773 / 763 with Stop loss of Rs @ 750 for the target near @ Rs 787 - 797 in short term…..!!!

Ø RELIANCE IND. FO @ RS 2014

Negative Trend @ Rs 2014 / 2044 with Stop loss of Rs @ 2060 for the target near @ Rs 1997 – 1980 in short term...!!

Ø LARSEN LTD FO @ RS 953

Negative Trend @ Rs 953 / 978 with Stop loss of Rs @ 988 for the target near @ Rs 938 – 928 in short term...!!!

Ø HCL TECHNO. FO @ RS 833

Negative Trend @ Rs 833 / 848 with Stop loss of Rs @ 860 for the target near @ Rs 823 – 818 in short term...!!!

Ø ICICI BANK FO @ RS 397

Negative Trend @ Rs 397 / 408 with Stop loss of Rs @ 420 for the target near @ Rs 388 – 380 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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