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Stock Market Daily Updates: 8 July 2020

Taking Stock: D-St rallies for 5th consecutive day; financials lead the charge

Photo Credit : Reuters

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Dear Trader

On Thursday Indian market started with positive trend but be care to long position in buying…on every rise may come profit booking though over the past several days FIIs have turned buyers in the last 4 consecutive trading session also.Nifty has been trading above its 50-day moving average with an upward rising channel formation which suggested further upside movement but Dow Jones also closed in red with approx 400 points, VIX is at the four-month low of 25 so we expect Government stimulus and hopes for an economic turnaround have so far kept investor sentiment upbeat. Apart from financial stocks, select private sector banks, metals, pharma and auto stocks witnessed a sharp rise in buying interest by FPI on Tuesday Banking stocks led the rally from the front as a concern of moratorium was overhyped. The rally was led by gains in HDFC, HDFC Bank, Indusind Bank, Kotak Bank and Larsen among others.

The overall mood of the markets remains positive led by hopes of a Covid-19 vaccine, improving macroeconomic conditions and improvement in manufacturing activities and car sales, indicating early signs of normalcy.

Over the past several days, Nifty has been trading above its 50-day moving average with an upward rising channel formation which suggested further upside movement. Based on the above technical structure, we expect Nifty Future opened @ 10799 as on 08.07.2020..!!
For Intraday Nifty Future has resistance at 10833 - 10860 Point; above which other resistance levels are at 10888 - 10909 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 10747 - 10707 Point; below 10707 Point, other support levels are at 10688 - 10670 Point.

I am positive for next bullish trend only above @ 10909 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 @ 10909 Point, again then the upper side target is quite high and it may touch @ 10919 Point in short term...!!!

¢    Bank Nifty Future opened @ 22618 as on 08.07.2020..!!

Bank Nifty Future has resistance at 22707 - 22777 Point; above which other resistance levels are at 22830 - 22919 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 22570 - 22474 Point; below 22474 Point, other support levels are at 22388 - 22303 Point.

I am positive for next bullish trend only above @ 22830 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 @ 22830 Point, again then the upper side target is quite high and it may touch @ 22919 Point in short term...!!

¢    Prediction on Stock specific Movement as on 08.07.2020..!!
¢    Kotak Bank FO @ RS 1365


Positive Trend @ Rs 1360 / 1350 with Stoploss of Rs @ 1333 for the target near @ Rs 1377 - 1385 in short term…..!!!

¢    HDFC Bank FO @ RS 1108
Positive Trend @ Rs 1100 / 1088 with Stoploss of Rs @ 1076 for the target near @ Rs 1133 - 1140 in short term…..!!!

¢    Divis Lab FO @ RS 2190
Positive Trend @ Rs 2177 / 2160 with Stoploss of Rs @ 2144 for the target near @ Rs 2208 - 2230 in short term…..!!!

¢    Reliance Ind. Fo @ RS 1830
Negative Trend @ Rs 1833 / 1848 with Stoploss of Rs @ 1860 for the target near @ Rs 1818 - 1808 in short term...!!!

¢    Lupin Ltd Fo CLOSED @ RS 875
Negative Trend @ Rs 875 / 888 with Stoploss of Rs @ 896 for the target near @ Rs 860 - 853 in short term...!!!
   
¢    Infosys Fo  CLOSED @ RS 780
Negative Trend @ Rs 780 / 797 with Stoploss of Rs @ 808 for the target near @ Rs 767 - 760 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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