Stock Market Daily Updates 11 Sep 2020-Nikhil Bhatt | Research Analyst – SEBI

Dear Trader…

The Indian stock market started trading with a recovery from the lows amid reports of tension on the border with China and supported by positive global cues and a smart rally in Reliance Industries that hit a fresh record high with a market cap of $200 billion,

Silver Lake’s estimated investment of Rs 500 crore in Reliance Industries and KKR’s talks to invest 1 billion in foreign funds stocks continued to weigh heavily on the Indian stock market, this action will give confidence to bring some hopes to the bulls to make a comeback from the market lows but a close above 11575 -11606 points is required for the uptrend to sustain in Nifty future. Geopolitical concerns or a selloff in US markets could drag the indices lower.. 

As the Reserve Bank of India (RBI) and the government are taking a series of reform measures, it has had a positive impact and has affected 70% of the banking sector in the country And with many sectors facing individual borrowers facing a major problem in repayment, 

The Supreme Court has also asked the central government and The deadline for the Reserve Bank of India (RBI) to take a firm decision on the moratorium has been extended by two weeks.

Friends, the opening trading sessions in September have also seen volatility and correction in commodities like global crude prices have fallen by an estimated 6% in two days…including global equity markets, with the impact of liquidity and government stimulus.

Indian stocks rallied after a massive stimulus package from central banks to capital markets, which had seen a sharp decline since the onset of the Corona epidemic in March. The Nifty has returned an estimated 54% in the above four months. However, Indian stock markets saw a correction in early September, led by the US stock market.

In my opinion, the flow of foreign institutional investors behind the primary market in the domestic market will remain positive even in September and hence the stock market is unlikely to see a sharp decline.

In the coming days, US markets will be in turmoil behind the US presidential election.

Commodities, including crude, have also rallied on the US Fed’s refusal to provide more stimulus package. In addition, Brent futures are trading at 45 a barrel, down from 40 a barrel in Saudi Arabia.

The breadth continues to remain weak with swift correction in midcaps and small-cap indices from their recent highs after a sharp up move over the previous few months.

Geopolitical concerns between India and China and global market volatility would continue to weigh on markets in the immediate term depending on the news flow. 

Apart from the global cues, trader will now be closely eyeing the upcoming macroeconomic data, which is IIP and CPI data for cues on economic recovery. Besides, the on-going tensions between India and China will also be on investors’ radar.

On the international front today, on September 11, 2020, the US inflation figures for the month of August and the release of India’s industrial production growth for the month of July 2020 will be watched by Indian markets along with global markets.

We may see a further rebound and the Nifty future could take a breather around the 11533 points level. Traders should prefer stocks that are participating in the move rather than betting on underperforming counters in anticipation of a rebound. Unless the upside area of 11505 – 11533 is crossed decisively on the upside, the selling pressure can’t be ruled out from the highs in the next. Immediate support is placed at 11404 points.

Dear Traders…. For the Trading Idea of…

Nifty Future opened @ 11430 as on 11.09.2020

For Intraday, Nifty Future has resistance at 11474 – 11505 Point; above which other resistance levels are at 11517 – 11533 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11404 – 11388 Point; below11388 Point, other support levels are at 11373 – 11360 Point.

I am positive for the next bullish trend only above @ 11533 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 @ 11533 Point, again then the upper side target is quite high and it may touch @ 11560 Point in the short term

Bank Nifty Future opened @ 22450 as on 11.09.2020

For Intraday, Bank Nifty Future has resistance at 22505 – 22575 Point; above which other resistance levels are at 22606 – 22676 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 22404 – 22360 Point; below22360 Point, other support levels are at 22303 – 22272 Point.

I am positive for the next bullish trend only above @ 22676 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 @ 22676 Point, again then the upper side target is quite high and it may touch @ 22730 Point in the short term

Trading Idea for the derivative stocks….

HDFC LTD FO @ RS 1771

Positive Trend @ Rs 1771 / 1760 with Stop loss of Rs @ 1750 for the target near @ Rs 1784 – 1793 in short term

KOTAK BANK FO @ RS 1313

Positive Trend @ Rs 1313 / 1303 with Stop loss of Rs @ 1292 for the target near @ Rs 1330 – 1344 in short term

M & M FO @ RS 614

Positive Trend @ Rs 614 / 606 with Stop loss of Rs @ 597 for the target near @ Rs 633 – 640 in short term

GLENMARK PHRAMA FO @ RS 467

Positive Trend @ Rs 467 / 457 with Stop loss of Rs @ 450 for the target near @ Rs 476 – 484 in short term

INDIGO FO @ RS 1266

Negative Trend @ Rs 1266 / 1288 with Stop loss of Rs @ 1300 for the target near @ Rs 1244 – 1230 in short term

MUTHOOT FINANCE FO @ RS 1106

Negative Trend @ Rs 1106 / 1126 with Stop loss of Rs @ 1133 for the target near @ Rs 1088 – 1080 in short term

LARSEN LTD FO @ RS 922

Negative Trend @ Rs 922 / 930 with Stop loss of Rs @ 940 for the target near @ Rs 909 – 903 in short term

HCL TECHNO. FO @ RS 724

Negative Trend @ Rs 724 / 733 with Stop loss of Rs @ 740 for the target near @ Rs 716 – 708 in short term

Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in

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.


Source Article