morning-outlook-2020-04-07

 

NIFTY:

After Thursday’s holiday, the NIFTY opened with a gap up but could not sustain and continued to drift lower finally closing down by 170 points or 2%. Indian markets are likely to follow signals given by the US markets. This means, if US moves higher, we are likely to move up. If the US moves down, chances are we will also fall. The lock down in India continues till April 14, Tuesday. Please remember that April 14 is also a holiday. Markets will be influenced by what happens when the lockdown due date approaches.

NIFTY Trading range:

The NIFTY appears to be moving inside a wide trading range with resistance at 8700 and support at 7500. The index closed at 8083. Any further decline will bring the NIFTY closer to the support zone. If this happens, we would view this as a trading opportunity to buy with proper stops. Buying should be done not when the markets is declining, but when the market falls and then stop falling.

Current levels are attractive for investors who wish to make small investment. Please treat this as one of many small investments  of your investment. Markets could go lower; therefore you must have money to add to your position if there is another significant decline.

TECHNICAL PICKS

COMPANY  CMP B/S RATIONALE
     TECHM 520.90 BUY Intermediate trend is sideways while short term trend is up here. The price has seen a sharp decline and then find support around 500-510 levels. Should look for a buying opportunity at CMP with a stop loss of 507 and for the TGT of 550.
     TATASTEEL 253.75 SELL The immediate trend of the stock is weak . The stock can be sold  at CMP with a stop loss of  260.50  and for  the target of  238.

 

DERIVATIVE PICKS

Derivative-Picks-a-07-04-2020

Derivative-Picks-b-07-04-2020

 

Top Delivery Percentage

Top-Delivery-Percentage07-04-2020

 

Upcoming Economic Data

Upcoming-Economic-Data07-04-2020

 

News Updates

•Godrej Properties Ltd. said it sold over 3,000 homes in the March quarter, the highest ever in terms of numbers and value during the period. Total bookings for the March quarter rose by 10 percent to Rs 2,380 crore, the property developer said in a press release. The sales in fourth quarter included over 500 homes sold in the second half of March as the company focused on digital sales tools to sustain operations despite the lockdown. It added 10 new projects in FY20 including five new projects in Q4.

•HDFC Bank advances grew 6.3 percent in the quarter ended March to Rs 9,93,000 crore while deposits rose 7.4 percent over the previous qua quarter to Rs 11,46,500 crore. On an annual basis, advances rose to a four-quarter high of 21 percent, while deposits grew 24 percent—the third consecutive quarter when the metric registered growth over 20 percent. The bank’s CASA (current and savings account) ratio rose to 42 percent from 39.5 percent in the previous quarter and 42.4 percent a year ago.

•Rating agency Moody’s Investors Service has placed the domestic and foreign currency issuer ratings for IndusInd Bank Ltd. under review for a potential downgrade, it said in a statement on Friday. The rating action was due to the bank’s business profile, which is prone to more risks in the current macroeconomic scenario, Moody’s said.

•Cement demand in India is estimated to fall by at least 20-25% If the lockdown due to pandemic Coronavirus extends to May, as per analysts from rating agency Crisil.

Source: Economic Times,  Moneycontrol  ,Business Today, Business Standard, Bloomberg Quint

 

BOARD MEETINGS

Board-Meeting-07-04-2020

 

Corporate Action

corporate-action-07-04-2020


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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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