- US markets ended mixed.
- Fed indicated lower interest rate for next 3 years.
- That is good for equity markets in long term.
- That is also good for Emerging Markets..
- Asian markets are mostly trade with negative bias.
- SGX Nifty is also down, now trading around 11520.
- Yesterday Reliance hit fresh all time high.
- Then profit booking came.
- Banking stocks are struggling to recover.
- Bank Nifty was more than 2.5X Nifty, just few months before.
- But due to huge out performance of IT stocks and Reliance, huge under performance of Banking stocks, now Bank Nifty is less than 2X of Nifty.
- Despite huge out performance by HDFC Bank, Bank Nifty is just up by 100 points.
- Bank Nifty fell 3000 points, but struggling to recover even one tenth of that fall.
- The trend may continue until the end of expiry.
- Interest on interest case comes up next Thursday.
- That may become a trigger for meaningful short covering in Banking Stocks.
- On August 31, Nifty future touched 11795 and fell to 11350.
- After that Nifty future has not crossed 11600.
- Yesterday was the first time, Nifty future crossed 11600.
- That is a bullish sign.
- So the next target will be 11800.
- But to reach that target, Bank Nifty has to recover.
- Nifty future is just 200 points from month high but Bank Nifty future is down by 2600 points.
- Markets are likely to be volatile due to weekly expiry.
- Yesterday ICICI Bank and HDFC Bank offered some hope for Bank Nifty.
- Will that continue? That is a million dollar question now.
- Nifty future may trade between 11500 and 11640.
The BSE Sensex climbed 258.50 points to close at 39,302.85 on September 16 while the Nifty50 rose 82.70 points to 11,604.50. According to pivot charts, the key support levels for the Nifty is placed at 11,541.5, followed by 11,478.5. If the index moves up, the key resistance levels to watch out for are 11,642.8 and 11,681.1.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 264.66 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 212.21 crore in the Indian equity market on September 16, as per provisional data available on the NSE
INTRADAY CASH CALL
AXIS BANK
BUY ABOVE = @ 446.20
SELL BELOW = @ 441
TARGET'S = 2rs / 4rs
SL = 2rs
Securities in Ban For Trade Date 17-SEP-2020:
1. ADANIENT
2. AUROPHARMA
3. BANKBARODA
4. BHEL
5. CANBK
6. ESCORTS
7. IBULHSGFIN
8. IDEA
9. JINDALSTEL
10. TATACHEM
11. VEDL
US MARKETS
The Dow Jones Industrial Average rose 36.78 points, or 0.13%, to 28,032.38, the S&P 500 lost 15.71 points, or 0.46%, to 3,385.49 and the Nasdaq Composite dropped 139.86 points, or 1.25%, to 11,050.47.
Asian Markets
Asian shares were set to drift lower on Thursday as concerns about the strength of the recovery from the COVID-19 pandemic remained, even after the U.S. Federal Reserve pledged to hold interest rates near zero until at least 2023.
Australian S&P/ASX 200 futures lost 0.22% in early trading. Japan’s Nikkei 225 futures were flat, while Hong Kong’s Hang Seng index futures lost 0.15%.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the index in India with a 81 points loss. The Nifty futures were trading at 11,522 on the Singaporean Exchange around 07:30 hours IST
Pledged Share Details - 17 September 2020
Max India: Promoter Max Ventures Investment Holdings released pledge of 10.15 lakh shares on September 11.
Laurus Labs: Promoter Satyanarayana Chava released pledge of 6.5 lakh share on September 15.
Sadbhav Engineering: Promoter Shashin Patel created pledge of 31.83 lakh shares on September 14.
Asian Paints: Promoter Smiti Holding and Trading released pledge of 8.36 lakh shares on September 15.
MEP Infra Developers: Promoter Sudha Mhaiskar revoked pledge of 4.5 lakh shares on September 11.
Economic Times
Business Standard
Ø Lok Sabha passes legislation to bring cooperative banks under RBI's supervision
Ø India to be a big hub for production of Russian vaccines: Kirill Dimitriev, CEO, RDIF
Ø Indian airlines seek $1.5 billion interest-free credit line from government
Ø Govt may defer levying import duty on display assembly for a year
Ø Q1 growth fell on decline in all sectors except agri: Govt informs Parliament
Ø OECD forecast a deeper contraction of 10.2% for India in the current fiscal
Ø Govt to bring out strategy paper on boosting industrial growth: Goyal
Ø GDP to contract 8.6% in FY21, fiscal stimulus needed soon: UBS Securities
Ø Fraud-hit PMC approaches other banks for possible merger: Administrator
Ø Global net zero emissions goal would require $1-2 trn investment/yr: Study
Ø Vedanta wins case for $499 mn award claim; SC rejects govt plea
Ø Revenues of Indian airlines fell 85.7% in April-June due to Covid-19: Puri
Business Line
Mint
Ø Initial data show advance tax mop up crossing ₹24,000 cr
Ø Government to sell shares in Mazagon Dock in October
Ø Ocean economy hit hardest by pandemic: World Resources Institute
Ø Sterling and Wilson promoters seek more time to repay dues
Ø Direct tax refunds worth ₹1.06-lakh crore issued till Sept 15
Ø Ericsson launches integrated Packet Core Firewall to boost 5G core security
Ø India's June quarter thermal coal imports down 42%
Ø Flipkart may fast-track IPO plan to 2021
Ø India's African oil imports hit 10-month high in Aug: shipping data
Ø Dish TV India adopts Make in India, plans to shift 50% production to India
Ø Motherson Sumi to cut dependence on auto parts biz, tap four other sectors
Financial Express
Deccan Chronicle
Ø Self-reliance in electronics, defence, pharma sectors can lead to import substitution of $186 billion: Study
Ø Indo-China trade deficit dips to $5.48 billion in April-June
Ø Pharma sector offers potential for high exports but India overly relies on China for drug ingredients
Ø Economic recovery in India likely to be gradual: RBI governor Shaktikant Das
Ø Merchandise exports continues to decline in August, trade deficit widens sequentially
Ø Home prices across India fall 2.3 per cent in six months
Market Closing:
Equity markets ended higher on Tuesday on back of positive cues from Asian markets and an outperformance in Banking and Pharma stocks.
Nifty climbed up 82 points (0.7%) to close at 11522.
Banking stocks, which were responsible for the indices ending lower on Monday, outperformed the indices in today's session.
The Nifty Bank index ended with gains of 1.65% on account of short covering in the later part of the day.
Pharma stocks were the other outperformers in today's session.
The index ended off the highest point of the day, but with gains of nearly 2%.
Most other sectoral indices ended flat in today's session. The realty index was the top laggard, ending with losses of 0.7%.
The midcap index recovered from the day's low to end 1% higher while the small-cap index gained 1.5%. India Volatility Index fell 2.8% to 20.6 levels.
Rally in the global market and strong Q2 earning guidance by HCL Tech boosted the market sentiment.
Among the global markets, Asian markets closed on a mixed bag while US and European market gained, supported by improving Chinese economic data and positive results coming from retailers.
Investors turned their attention to a US Fed meeting (Two days meeting commence from today) for clues on monetary policy as economies recover from the pandemic.
Banking stock like ICICI Bank gained 2% to close at Rs372 after the news that the RBI has exempted the Bank, from the Banking Regulation Act, 1949 with respect to shareholding above 30% in ICICI Lombard and ICICI Prudential Life Insurance, for a period of three years Sept. 2023.
IndusInd Bank gained 4% to close at Rs633. Axis Bank, Bandhan Bank, HDFC Bank and Kotak Bank gained between 1-4%.
Pharma stocks gained on account of impressive quarterly results announced, US FDA Approval and development of Covid vaccine. Cipla gained 3% to close at Rs742. Dr Reddy surged around 2% to close at Rs4442 while it has touched high of Rs4549.
Among the mid and small cap space, stocks like IDFC (up 15%), JB Chemical, Trent, Birla Corp, Radico Khaitan, Deepak Fertilizer, Jubilant Life gained 6-8%.
HAPPY TRADING
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