A sharp and sudden decline in the second half brought Nifty near its strong support level around 11185. The index opened without much of a gap at 11503.80. Prices have traded sideways in the first half just like any other trading day. But in the second half, around 12:30 PM, a sharp decline started and brought down the index to its intraday lows at 11218.50, a decline of almost 300 points. The index finally closed at 11222.20 down by 282.75 points. All the sectoral indices have closed in red led be Realty, Metal, Auto and Pharma.
On Friday, 18 September, a trading range broke on the downside and we went short at 11490. Our stop for this trade was at 11540 and target on the downside was 11370. Yesterday the market moved sideways for a while and then started its decline and reached our target with ease.
The long term trend continues to be up. This should not be surprising because the Nifty is still above its first support level of 11185. The long term momentum has started falling. If the support of 11185 holds, this could be a dip else we may enter a deeper correction.
Bank Nifty opened at 22429.35 with a gap up of 105 points. The index started falling just after the opening tick and continued for the whole day. Prices have seen a sharp decline of almost 500 points around 2:30 PM and finally closed at 21290 with a loss of more than 700 points. PSU banks have underperformed Private banks. Private banks have closed lower by more than 2% whereas Private banks have fallen by almost 4%.
We had suggested a trade on a breakout of the range of 22000-22800. The Nifty broke down on Friday but closed just above 22000. The index continued that fall and made its low at 21270.
If the index further breaks 21000, we should sell again. If the support of 21000 holds, we can look to buy.
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|AXISBANK||423.35||SELL||The stock has given a breakdown from a range. The stock can be sold between 425-426 with a stop at 433 and for the target of 410|
|TCS||2465.30||BUY||The stock has reached a good support level and may see an up move from here. The stock can be bought at CMP with a stop at 2440 and for the target of 2500-2520.|
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|STOCK OPTION||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|TATAMOTORS||140 PE||BUY||6||5.50||4||10||OI increase|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|INFY.Sep 24||1007.4||0.24||12.24||41398800||ICICIPRULI.Sep 24||410.75||-2.91||38.53||10468500|
|TCS.Sep 24||2468.05||0.46||0.3||8994300||RBLBANK.Sep 24||168.05||-6.92||27.7||21203000|
|Short Covering||Long Unwinding|
|KOTAKBANK.Sep 24||1281.5||0.03||-1.09||9876000||GRASIM.Sep 24||713.55||-4.25||-20.18||9764100|
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TOP DELIVERY PERCENTAGE
|Stocks||Price||%Chg||Total Qty||Delivery||Del %||% Change|
|Vedanta Limited||128.95||-1.53||15901212||11669031||71.35||India Vix||22.19||10.67||83127|
|Britannia Ind Ltd.||3629.3||-4.43||604282||631679||66.65||Nifty 50||11250.55||-2.21||83127|
|Mrf Ltd.||58159.25||-1.34||23226||10937||63.55||Nifty Energy||15366.3||-2.6||83127|
|Tata Chemicals Ltd.||286.7||-1.24||3941998||2045132||63.5||Nifty Fmcg||29541.75||-3.02||83127|
|Larsen & Toubro Limited||881.85||-2.09||4598553||4739557||63.22||Nifty Bank||21366.8||-3.02||83127|
|Power Grid Corporation o||170.5||-0.81||7499225||8423443||62.95||Nifty Auto||7832.2||-4.04||83127|
|Hindustan Unilever Ltd||2037.8||-2.9||3483981||2730926||61.02||Nifty Pharma||11799.55||-4.23||83127|
|Hdfc Ltd.||1708.15||-0.92||3174505||3398976||60.24||Nifty Media||1557.95||-4.51||83127|
|Indraprastha Gas Limited||415.2||-1.14||5939158||8387627||59.8||Nifty Metal||2240.35||-5.16||83127|
UPCOMING ECONOMIC DATA
|•INR: Bank Loan Growth on 25th September, 2020
•INR: FX Reserves, USD on 25th September, 2020
|•USD: Existing Home Sales (Aug) on 22nd September, 2020
•USD: Crude Oil Inventories on 23rd September, 2020
|•HDFC Bank Ltd on Monday said it is aware of a complaint filed against the bank and its three employees in the United States recently, but denied the allegations and intended to “defend itself vigorously”. The bank expects its response to the lawsuit to be due in early 2021, it said in a regulatory filing.
•SBI Life Insurance on Monday said it has signed bancassurance agreement with Yes Bank to offer a comprehensive bouquet of life insurance solutions to the bank’s customers across the country. As part of the partnership, SBI Life’s diverse range of individual and group insurance solutions will be offered to the customers of Yes Bank through the bank’s branches spread across 28 states and 8 Union Territories in India.
•After mortgage lender HDFC Ltd and private sector ICICI Bank the People’s Bank of China has now made equity investment in one of India’s largest NBFCs Bajaj Finance. The Chinese Central bank’s investment in mortgage lender HDFC Ltd had created a furore in the financial market. The investment in Rahul Bajaj’s financial services arm is less than 1.0 per cent
•HCL Technologies has announced the acquisition of Australian IT firm DWS Ltd for $115.8 million in a bid to further expand its digital offerings especially in Australia and New Zealand. The DWS Group closed FY 2020 with revenues of $ 122.9 million and has over 700 employees with operations in Melbourne, Sydney, Adelaide, Brisbane, and Canberra.
Source: Economic Times, Moneycontrol ,Business Today, Livemint, Business Standard, Bloomberg Quint
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|ARTEMISELC||Audited Results;Quarterly Results||22-Sep-20||CREDITACC||General;Audited Results||23-Sep-20|
|PRABHAT||Audited Results||22-Sep-20||SUNRAJDI||Results;Audited Results||23-Sep-20|
|SPANDANA||General||22-Sep-20||RUBFILA||Preferential Issue of shares||24-Sep-20|
|Company Name||Ex-Date||Purpose||Company Name||Ex-Date||Purpose|
|AGARIND||22-Sep-20||Dividend – Rs. – 1.50||DYNAMIC||22-Sep-20||Final Dividend – Rs. – 0.2500|
|ASTAR||22-Sep-20||Dividend – Rs. – 1.50||EIHOTEL||22-Sep-20||Right Issue of Equity Shares|
|AVL||22-Sep-20||Final Dividend – Rs. – 2.50||FIBERWEB||22-Sep-20||Final Dividend – Rs. – 0.50|
|BASANTGL||22-Sep-20||Dividend – Rs. – 0.0500||FOODSIN||22-Sep-20||Final Dividend – Rs. – 0.20|
|BEARDSELL||22-Sep-20||Dividend – Rs. – 0.10||GUJAPOLLO||22-Sep-20||Final Dividend – Rs. – 3.00|
|CEINSYSTECH||22-Sep-20||Final Dividend – Rs. – 2.50||HALDYNGL||22-Sep-20||Dividend – Rs. – 0.60|
|CGVAK||22-Sep-20||Final Dividend – Rs. – 0.7500||HBEL||22-Sep-20||Final Dividend – Rs. – 2.50|
|DSSL||22-Sep-20||Interim Dividend – Rs. – 0.50||HGS||22-Sep-20||Interim Dividend – Rs. – 6.00|
DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014
Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more
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