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Stock Market Daily Updates: 4 Sep 2020

Immediate resistance to be watched at 11404 points in Nifty future, with short term lower support placed at 11303 points, The strategy should be to buy on dips.

Photo Credit :

1595305653_cBKF5E_2020_07_21T041452Z_1_LYNXNPEG6K07F_RTROPTP_4_INDIA_STOCKS.JPG

Dear Trader…

On the last day of the week, the Indian stock market started also profit booking on higher trading level of Nifty future near at 11393 points; The Nifty future opened negative but remained consolidative in between 11303 to 11404 points for the most part of the trading session. It formed a small Bearish Candle on a day. It is finding hurdles at higher zones but at the same time decline is being bought into. It is forming a symmetrical triangle pattern on a lower time frame as supports and resistances are coming closer to give a decisive price breakout. 

Wall street sell-off accelerates, with Dow plunging 800 points as Apple drags tech lower, Apple shares fell more than 7% and were on pace for their worst day since March 16, when the plunged 12.9%. Face book, Amazon and Alphabet were all down at least 5%. Microsoft slipped 5.5%. Netflix pulled back by 3.4%. The S&P 500 tech sector traded 5.6% lower and was on track for its biggest one-day decline since June 11, when it fell 5.8%. The sector was also headed for its first losing session in 11 trading days.

The market was waiting for the final decision of the Supreme Court on the issue of Loan Moratorium. Finally, yesterday after the market ended, the court made a partial announcement, in which it was decided not to declare the arrears as NPA for the next two months. This court hearing will continue until September 10, after which a final opinion can be given. The current announcement is not detrimental to the financial sector. It can be called neutral or positive.

At the local level, the failure of India to infiltrate China on the Galvan border and the concern of excessive rainfall this year on the one hand due to heavy rains across the country on the other hand are expected to have a positive impact on the agro-rural economy and In the case of loans, the central government told the Supreme Court that the moratorium could be extended for two years. The stimulus package in the country is expected in the coming days. 

Friends, Not only in India, but in the stock markets all over the world, there is a wonderful boom in liquidity. The American Nasdaq Composite and the S&P 500 have surpassed the March lows. Markets in Brazil, South Korea, Germany and Russia have also improved significantly. But it must also be understood that the whole world is fighting the threat of the corona virus. Given that, GDP will decline in the next two to three quarters, but there will be a rapid bounce back next year. 

Globally, central banks are pouring in a lot of liquidity through stimulus packages. At home, the Reserve Bank has taken and is taking a number of such steps. Due to this, huge investments are coming in emerging markets like India. Under such circumstances, liquidity will continue to flow into emerging markets like India from next December-January. Second, the monsoon is in full swing at home and the farmers are happy. The rural economy is in good shape and the urban economy is also slowly recovering as Unlock-4 has been declared. Of course, the quarterly results of the remaining companies in the coming days, the status of the Covid-19 case, the growing tension between India and China and the trade war between the US and China are likely to determine the movement of the Indian stock market.

On the technical charts, the short term trend on the Nifty future remains volatile, with a minor positive bias. There is a possibility of similar range movement with positive bias in the next one-to-two sessions. Immediate resistance to be watched at 11404 points in Nifty future, with short term lower support placed at 11303 points, The strategy should be to buy on dips.

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11383 as on 04.09.2020

For Intraday, Nifty Future has resistance at 11404 – 11433 Point; above which other resistance levels are at 11460 – 11488 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11360 – 11333 Point; below11333 Point, other support levels are at 11303 – 11272 Point.

I am positive for the next bullish trend only above @ 11488 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 break @ 11488 Point, again then the down side support is quite low and it may touch @ 11505 Point in the short term

Bank Nifty Future opened @ 23300 as on 04.09.2020

For Intraday, Bank Nifty Future has resistance at 23373 – 23404 Point; above which other resistance levels are at 23474 – 23606 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 22880 – 22808 Point; below22808 Point, other support levels are at 22676 – 22606 Point.

I am positive for the next bullish trend only above @ 23373 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 break @ 23373 Point, again then the down side support is quite low and it may touch @ 23404 Point in the short term

Trading Idea for the derivative stocks

RELIANCE FO @ RS 2088

Positive Trend @ Rs 2088 / 2073 with Stop loss of Rs @ 2060 for the target near @ Rs 2108 - 2130 in short term

LUPIN LTD FO @ RS 948

Positive Trend @ Rs 948 / 933 with Stop loss of Rs @ 919 for the target near @ Rs 963 - 970 in short term

INFOSYS FO @ RS 919

Positive Trend @ Rs 919 / 909 with Stop loss of Rs @ 898 for the target near @ Rs 933 - 940 in short term

INDIGO FO @ RS 1240

Positive Trend @ Rs 1240 / 1222 with Stop loss of Rs @ 1208 for the target near @ Rs 1273 - 1280 in short term

TCS LTD FO @ RS 2286

Negative Trend @ Rs 2286 / 2308 with Stop loss of Rs @ 2323 for the target near @ Rs 2260 – 2247 in short term

KOTAK BANK FO @ RS 1377

Negative Trend @ Rs 1377 / 1390 with Stop loss of Rs @ 1397 for the target near @ Rs 1360 – 1350 in short term.

HDFC FO @ RS 1793

Negative Trend @ Rs 1790 / 1808 with Stop loss of Rs @ 1818 for the target near @ Rs 1777 – 1770 in short term

ACC LTD FO @ RS 1330

Negative Trend @ Rs 1330 / 1344 with Stop loss of Rs @ 1360 for the target near @ Rs 1317 – 1303 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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