News Shots

US Markets again fell heavily yesterday, led by technology stocks. NASDAQ down 4%, DOW and S&P 500 down more than 2%. TESLA, after being denied entry to S&P 500, fell 21% in a single day!

The government plans to sell about 15-20 per cent stake in IRCTC via offer for sale (OFS) and would like to complete the transaction in a minimum number of tranches.

Wipro announced plans to set up a Digital Innovation Hub in Düsseldorf, Germany. The proposed Digital Innovation Hub will serve as Wipro’s flagship center in Europe and will offer digital transformation expertise to companies in Germany, enabling organizations to cross skill and upskill besides supporting talent development in local communities.

Number of customers preferring to buy high-value products through instalments stood at an “all-time high” during the coronavirus pandemic, the country’s largest private sector lender HDFC Bank reported.

Reliance Retail has been advertising four times more since July to August this year compared to the same duration last year increasing its visibility amongst consumers as it takes control of one-third of India’s organised retail market and competes with ecommerce majors.

Vodafone Idea managing director and chief executive officer Ravinder Takkar will not be given any remuneration during his current tenure of three years, according to a proposal by the company.

The Cabinet Committee on Economic Affairs (CCEA) approved asset monetisation of subsidiaries of Power Grid Corporation of India Ltd (PGCIL) through infrastructure investment trust which would help the firm garner Rs 7,000 crore in the first lot.

TeamLease Services has increased its stake in edu-tech company Schoolguru to 76.37 percent from 40 percent.

NTPC has signed a pact to implement 47 solar projects overseas and will add 5GW solar capacity in the next 2 years.

Indian Hume Pipe received a work order of Rs 134.8 crore from the Odisha government for rural water supply projects.

GIC Re reported a net loss of Rs 557.47 crore for the quarter ended June 2020. The company had posted a net profit of Rs 108.60 crore in the corresponding period of the previous financial year.

What to expect today?

Yesterday,  NIFTY tried to move up and reached 11,430, only to fall to news regarding tensions at the Indo China border. It fell heavily and closed near 11,300. Click here for a detailed analysis of last week’s market and stock movements. 

As mentioned in the beginning, the US Markets have seen another huge fall. That is, the global cues are extremely negative. Only good factor there is the sell off that we witness now is mostly profit booking and not due to any major negative factor. So, the markets can stabilize and move back up soon.

The local cues are also negative with the tension at the border increasing.

As discussed yesterday, 11,250 is a strong support but that may be broken today. Next support to watch out for is 11,200.

Markets all over the globe are in red. SGX NIFTY is currently trading at 11,262, which is 50 points lower, indicating a gap down in the Indian Market.

NIFTY is likely to trade between 11,200 and 11,350 today. There is support at 11,250 and 11,200 and resistance at 11,290 and 11,350

Highest Call Open Interest at 11,500, followed by 12,000. Highest Put Open Interest at 11,000, followed by 11,300. 

Foreign institutional investors (FIIs) net sold shares worth Rs 1,056.52 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 620.29 crore. It is interesting to note that DIIs have turned net buyers!

The whole market itself is weak. Banks and Pharma look especially weak.

During uncertain times like these, it is always advised to stay away from general swing trades. If you still want to swing trade, you need to be extremely stock specific and find rare opportunities. For long term investors, the market is definitely offering an opportunity to accumulate stocks at low prices. But a good time to buy would be when the market starts moving back up. So, it is safe now to either stay away from the market or do intraday trading.