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Stock Market Daily Updates: 30 Sep 2020

Of late on the back of global cues our market has become volatile therefore traders need to be focus on stock specific for the next few days. The immediate support is placed 11188 point and a sustainable move above 11303 levels could pull Nifty future towards the next 11333-11373 range for the near term.

Photo Credit :

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Dear Trader…

After showing a fine upside bounce in the last couple of sessions, The Indian stock market started trading shifted into a consolidation with volatility on reports of a new package being prepared by the government with good rains in the country. Amid positive global cues, the Supreme Court adjourned the hearing on the issue of waiver of interest on loans with a move to extend the loan moratorium of banks amid the Corona epidemic. The decision to postpone the meeting for 2020 has had a negative impact on the sell-off in banking and finance stocks. 

With the possibility of a second phase of the global Corona epidemic in the commodity sector looming, global investors and funds are pulling back on investments in other assets, including precious metals, turning to buying in dollars. As well as at the local level, gold and silver saw a two-pronged decline.

Friends, the Reserve Bank of India has reportedly postponed a meeting of the Monetary Policy Committee (MPC) from September 29 to October 1. The RBI governor had earlier said that the rally in stock markets was not in line with the state of the economy. Given this indication, the possibility of a market downturn in the coming days cannot be ruled out, according to the governor's statement.

Trading in the Indian stock market will be closed on the occasion of Gandhi Jayanti on October 2. The market will keep an eye on the sales figures.

On the international front, the Indian stock market, along with the rest of the world, will be watching the development of the upcoming US presidential election.

The broader negative chart pattern as per the weekly chart is still intact and any upside bounce from here could be considered as a sell on rise opportunity in the near term. The 50-day SMA level at Nifty future is 11303 point and resistance of Fibonacci retracement at 11300 increased the selling pressure in the market until the Nifty future  index convincingly doesn’t cross the 11330 levels, players should not to be a buyer in the index. Profit-taking at higher levels dragged Indian indices in line with the muted trend in global markets.

The short term trend of Nifty future is positive with range bound movement. Further consolidation or narrow range movement is likely in the next 1-2 sessions with volatile intraday swings.

Selling is advisable between at 11303 to 11373 point for the target of 11188 or 11101 point. Meanwhile for the Nifty future 11088 point would be a big support, however, below that we may see a further weakness to 11008 levels. 

Of late on the back of global cues our market has become volatile therefore traders need to be focus on stock specific for the next few days. The immediate support is placed 11188 point and a sustainable move above 11303 levels could pull Nifty future towards the next 11333-11373 range for the near term.
 Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11249 as on 30.09.2020..!!

For Intraday, Nifty Future has resistance at 11272 – 11303 Point; above which other resistance levels are at 11317 – 11333 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11202 – 11188 Point; below11188 Point, other support levels are at 11160 – 11133 Point.

I am positive for the next bullish trend only above @ 11303 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 @ 11303 Point, again then the upper side target is quite high and it may touch @ 11333 Point in the short term.

Bank Nifty Future opened @ 21423 as on 30.09.2020..!!

For Intraday, Bank Nifty Future has resistance at 21474 – 21505 Point; above which other resistance levels are at 21575 – 21606 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 21373 – 21303 Point; below21303 Point, other support levels are at 21272 – 21202 Point.

I am positive for the next bullish trend only above @ 21575 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 @ 21575 Point, again then the upper side target is quite high and it may touch @ 21606 Point in the short term

Ø Trading Idea for the derivative stocks….

LUPIN LTD FO @ RS 999

Positive Trend @ Rs 999 / 983 with Stop loss of Rs @ 973 for the target near @ Rs 1018 - 1033 in short term

INFOSYS FO @ RS 994

Positive Trend @ Rs 994 / 980 with Stop loss of Rs @ 974 for the target near @ Rs 1009 - 1020 in short term

CIPLA LTD FO @ RS 764

Positive Trend @ Rs 764 / 754 with Stop loss of Rs @ 747 for the target near @ Rs 777 - 790 in short term

M & M FO @ RS 616

Positive Trend @ Rs 616 / 606 with Stop loss of Rs @ 600 for the target near @ Rs 633 - 640 in short term

ACC LTD FO @ RS 1396

Negative Trend @ Rs 1396 / 1408 with Stop loss of Rs @ 1414 for the target near @ Rs 1380 – 1373 in short term

MUTHOOT FIN. FO @ RS 1138

Negative Trend @ Rs 1138 / 1160 with Stop loss of Rs @ 1177 for the target near @ Rs 1122 – 1108 in short term

HDFC BANK FO @ RS 1057

Negative Trend @ Rs 1057 / 1073 with Stop loss of Rs @ 1080 for the target near @ Rs 1044 – 1033 in short term

INDUSIND BANK FO @ RS 538

Negative Trend @ Rs 538 / 550 with Stop loss of Rs @ 557 for the target near @ Rs 527 – 520 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.


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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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