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Stock Market Daily Updates: 8 Oct 2020

Nifty future is likely to trade volatile note tracking mixed global cues, If Nifty future trade above 11808 levels then it may test 11838 – 11888 – 11909 levels. On the downside, 11787 - 11770 levels may act as support for the trading level.

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We still maintain our stance that the trend is volatile and pullback rally is in offing and selling may emerge. Hence trader needs to be cautious at current level.

Nifty future is likely to trade volatile note tracking mixed global cues, If Nifty future trade above 11808 levels then it may test 11838 – 11888 – 11909 levels. On the downside, 11787 - 11770 levels may act as support for the trading level. 

Dear Trader…

The Indian stock market started trading strongly. Despite Corona's transition to the rest of the world, Indian stock markets rebounded, cautiously in global markets, with US President Donald Trump recovering and returning to the White House. 

The decision to waive interest on interest during the loan moratorium of banks in India and not to be borne by the government as well as the Monetary Policy Committee (MPC) meeting of the Reserve Bank of India, which was postponed last week, will now announce the monetary policy on October 7 and the corporate results The Indian stock market rallied today to start with the TCS result.

On the economic front, The India Services Business Activity Index, compiled by IHS Market, stood at 49.8 in September compared with 41.8 in August. It rose for the 5th straight month. With manufacturing activity also improving, the Composite PMI Output Index rose to 54.6 in September from 46 in August, the manufacturing PMI rose to an eight-year high in September last year with GST collection rising to over Rs 95,000 crore and positive factors pushing short-covering stocks, but the government is forced to borrow heavily in the coming days as it faces major challenges.

Don't be surprised if the market declines again with a serious twist. Presidential election in the United States, with this, the Reserve Bank has announced to hold the MPC meeting for three days from October 7 to October 9. After the review meeting, the Indian stock market will keep an eye on the monetary policy announcement on October 9.

Traders bid up the prices of frontline stocks that reported good monthly data including financials and Auto stocks. Now the next resistance for the Nifty is at 11808 points. While global cues will impact Indian stock market trajectory temporarily, unless the trigger is very large, impacting the risk on sentiments, Interim corrections should be used to accumulate, as the broader setup remains positive, we do not see a large correction till the current results season is out.

In coming trading session, main indices have almost reached the last high, in context with a bounce in the global and the domestic economy. Interim corrections should be used to accumulate, as the broader setup remains positive, the market may turn a bit volatile in the short term, as it will be difficult to maintain the momentum given important upcoming events of the US election and Q2 result season so index is likely to trade volatile note tracking mixed global cues, 

We still maintain our stance that the trend is volatile and pullback rally is in offing and selling may emerge. Hence trader needs to be cautious at current level.

If Nifty future trade above 11808 levels then it may test 11838 – 11888 – 11909 levels. On the downside, 11787 - 11770 levels may act as support for the trading level.

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11823 as on 08.10.2020..!!

For Intraday, Nifty Future has resistance at 11848 – 11860 Point; above which other resistance levels are at 11888 – 11909 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11808 – 11787 Point; below11787 Point, other support levels are at 11773 – 11760 Point.

I am positive for the next bullish trend only above @ 11888 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 @ 11888 Point, again then the upper side target is quite high and it may touch @ 11909 Point in the short term

Bank Nifty Future opened @ 23179 as on 08.10.2020..!!

For Intraday, Bank Nifty Future has resistance at 23230 – 23272 Point; above which other resistance levels are at 23330 – 23373 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 23088 – 22970 Point; below22970 Point, other support levels are at 22909 – 22888 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 crosses @ 23373 Point, again then the upper side target is quite high and it may touch @ 23404 Point in the short term

Ø Trading Idea for the derivative stocks….

Ø MUTHOOT FIN. FO @ RS 1180

Positive Trend @ Rs 1180 / 1166 with Stop loss of Rs @ 1153 for the target near @ Rs 1203 - 1212 in short term

Ø INFOSYS FO @ RS 1080

Positive Trend @ Rs 1080 / 1066 with Stop loss of Rs @ 1053 for the target near @ Rs 1097 - 1104 in short term

Ø GRASIM IND. FO @ RS 763

Positive Trend @ Rs 763 / 753 with Stop loss of Rs @ 744 for the target near @ Rs 777 - 790 in short term

Ø INDUSIND BANK FO @ RS 626

Positive Trend @ Rs 626 / 616 with Stop loss of Rs @ 606 for the target near @ Rs 637 - 644 in short term

Ø MUTHOOT FIN. FO @ RS 1974

Negative Trend @ Rs 1974 / 1997 with Stop loss of Rs @ 2008 for the target near @ Rs 1960 – 1944 in short term

Ø ACC LTD FO @ RS 1483

Negative Trend @ Rs 1483 / 1497 with Stop loss of Rs @ 1507 for the target near @ Rs 1474 – 1466 in short term

Ø AURO PHARMA FO @ RS 831

Negative Trend @ Rs 831 / 848 with Stop loss of Rs @ 855 for the target near @ Rs 818 – 808 in short term

Ø SUN PHARMA FO @ RS 517

Negative Trend @ Rs 517 / 533 with Stop loss of Rs @ 540 for the target near @ Rs 508 – 497 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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