Stock Market Daily Updates 9 Sep 2020-Nikhil Bhatt | Research Analyst – SEBI

Dear Trader…

Indian market witnessed profit-taking at higher levels on day by day as geopolitical tension between India and China continued to rise. The Nifty 50 managed to hold on to 11202 points towards close which is a positive sign for the bulls.

In global markets, US stock markets closed for Labor Day and European markets fell on the second day of the week amid a two-way slump in Indian stock markets. Amid reports of a slowdown in global industrial activity and fears of a resurgence of the corona virus globally, a new stimulus package has become inevitable amid fears of falling international crude oil prices, a worsening economic situation in India and rising unemployment.

Funds were seen selling through banking-finance stocks on estimates that the condition of finance companies will become more precarious. In terms of commodity sector, India, the world’s second-largest consumer of gold, saw its gold imports grow by 35.50% in August this year, compared to an estimated 14.80 tones in August 2019. Gold imports have increased in view of the upcoming festive demand and after the country has eased the lockdown since July. Gold prices are currently trading 10% below its current record high. However, in the coming days, the demand for gold during the Dussehra – Diwali festival is likely to see a rise in gold prices.

Friends, With the monsoon being very successful across the country, the agriculture sector is expected to see high extraordinary growth this year and also likely to boost the rural economy and boost economic growth but as tensions on the border between India and China worsen and tensions between the US and China escalate, talks between the two countries will be on the lookout in the coming days.

With stimulus, concessions in the loan moratorium, banks’ balance sheets are expected to deteriorate further in the coming days, with concerns still looming on the economic front. As stock prices of a number of companies have risen sharply in the last five months, caution is needed in easing the overbought position and estimating that the funds will return to cash.

With the US elections in November likely to ease the flow of foreign funds to cautious investments and hedge funds in global markets, the Indian stock market is also expected to see a major upheaval with the near-term turmoil.

Technically, the index has been trading below its 21 Days Moving Average and has already given a breakout of its Rising Wedge formation which suggests a weakness in the index. At the present level, downside support comes at 11202 points in Nifty future and if it breaks this support then 11188 would be there while upside resistance comes at 11303 points. However, it couldn’t sustain in the higher territory.

Dear Traders…. For the Trading Idea of…

Ø  Nifty Future opened @ 11245 as on 09.09.2020..!!

For Intraday, Nifty Future has resistance at 11288 – 11303 Point; above which other resistance levels are at 11317 – 11330 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11217 – 11202 Point; below11202 Point, other support levels are at 11188 – 11160 Point.

I am positive for the next bullish trend only above @ 11330 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 @ 11330 Point, again then the upper side target is quite high and it may touch @ 11373 Point in the short term…!!!

ØBank Nifty Future opened @ 22500 as on 09.09.2020..!!

For Intraday, Bank Nifty Future has resistance at 22575 – 22636 Point; above which other resistance levels are at 22676 – 22707 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 22434 – 22373 Point; below22373 Point, other support levels are at 22303 – 22280 Point.

I am positive for the next bullish trend only above @ 22707 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 @ 22707 Point, again then the upper side target is quite high and it may touch @ 22777 Point in the short term…!!

Ø Trading Idea for the derivative stocks….

Ø MUTHOOT FINANCE FO @ RS 1070

Positive Trend @ Rs 1070 / 1060 with Stop loss of Rs @ 1050 for the target near @ Rs 1088 – 1108 in short term…..!!!

Ø LARSEN LTD FO @ RS 904

Positive Trend @ Rs 904 / 888 with Stop loss of Rs @ 880 for the target near @ Rs 918 – 930 in short term…..!!!

Ø ACC LTD FO @ RS 1297

Positive Trend @ Rs 1297 / 1287 with Stop loss of Rs @ 1280 for the target near @ Rs 1313 – 1330 in short term…..!!!

Ø HCL TECHNO. FO @ RS 711

Positive Trend @ Rs 711 / 703 with Stop loss of Rs @ 696 for the target near @ Rs 727 – 735 in short term…..!!!

Ø TCS LTD FO @ RS 2361

Negative Trend @ Rs 2361 / 2377 with Stop loss of Rs @ 2388 for the target near @ Rs 2330 – 2323 in short term…!!!

Ø HDFC LTD FO @ RS 1781

Negative Trend @ Rs 1781 / 1793 with Stop loss of Rs @ 1808 for the target near @ Rs 1763 – 1750 in short term…!!!

Ø LUPIN LTD FO @ RS 928

Negative Trend @ Rs 928 / 938 with Stop loss of Rs @ 944 for the target near @ Rs 913 – 909 in short term…!!!

Ø TATA STEEL FO @ RS 402

Negative Trend @ Rs 402 / 414 with Stop loss of Rs @ 420 for the target near @ Rs 396 – 390 in short term…!!!

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