NIFTY:

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:

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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TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
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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DERIVATIVE PICKS

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
INFRATEL.Sep 24 188.9 -5.31 26.05 18832800
MINDTREE.Sep 24 1268.9 -0.54 22.44 2292000
BOSCHLTD.Sep 24 12780 -2.34 20.63 86550
                                                                        Short Covering Long Unwinding
Sector Price Price% OI% OI Sector Price Price% OI% OI
KOTAKBANK.Sep 24 1281.5 0.03 -1.09 9876000 GRASIM.Sep 24 713.55 -4.25 -20.18 9764100
PNB.Sep 24 30.5 -6.44 -12.51 32690000
LT.Sep 24 878.05 -2.68 -8.22 12209450
BANKBARODA.Sep 24 42.55 -5.55 -8.07 42435000
SAIL.Sep 24 35 -8.02 -7.51 39102000

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TOP DELIVERY PERCENTAGE

Stocks Price %Chg Total Qty Delivery Del % % Change
Sectors Price Change % Quantity
Vedanta Limited 128.95 -1.53 15901212 11669031 71.35 India Vix 22.19 10.67 83127
Nestleind 15430.75 -4.08 277176 139995 70.94 Nifty it 19729 -0.49 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

   Domestic                                                                                                                                                  International
•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

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NEWS UPDATES

•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

BOARD MEETINGS

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
HARISH Quarterly Results 22-Sep-20 DHRUV A.G.M.;General 23-Sep-20
KAVITIND General 22-Sep-20 KAARYAFSL General 23-Sep-20
NOVAPUB General 22-Sep-20 KONARKSY Quarterly Results 23-Sep-20
OONE Quarterly Results 22-Sep-20 SATINDLTD Amalgamation 23-Sep-20
PRABHAT Audited Results 22-Sep-20 SUNRAJDI Results;Audited Results 23-Sep-20
RPEL General 22-Sep-20 KPRMILL General 24-Sep-20
SOBME General;Quarterly Results 22-Sep-20 LEHIL General 24-Sep-20
SPANDANA General 22-Sep-20 RUBFILA Preferential Issue of shares 24-Sep-20
AIML Audited Results 23-Sep-20 CHANDRIMA A.G.M.;General 25-Sep-20
BCPL General 23-Sep-20 KUMAKAIND Bonus issue 25-Sep-20

CORPORATE ACTION

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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