PRE MARKET REPORT SEPTEMBER 9 - 2020


1. SGX Nifty Down By 50 Points, It May Effect Our Today Markets

2. US Markets are Negative

3. EUROPEAN Markets are Negative

4. ASIAN Markets are Also Negative

5. FIIs are Sellers With 1468

6. DIIs are Buyers with 621

7. IN this Month Both FIIs and DIIs are Net Sellers

8. its a Negative Sign

9.Yesterday morning, Dow future was up 350 points but when markets opened,   fell 650 points.

10.That is a whopping 1000 points fall, after falling 2 days prior to that.

11.US markets may stabilise at lower levels.

12.Remember the fall came without any corresponding negative news.

13.So it is just excessive optimism has resulted in huge profit booking.

14.Asian markets are falling as they did not factor in US fall.

15.But we have factored in, yesterday afternoon.

16.Pharma stocks will be in focus after Astrazeneca paused corona trails.

17.Banks, Pharma looking more weak.

18.Reliance has been supporting the market for last two days.

19.Nifty future should take support at 11220.

20.Resistance may come at 11400.

21.Not a good idea to short the market at open.

22.Technology stocks and Reliance Industries supported the market, but the       sell-off was led by metals, pharma, and select banks, auto and FMCG stocks

23.The broader markets underperformed frontliners as the Nifty Midcap index     dropped 1.4 percent and Smallcap declined nearly a percent

24. Nifty May Trade Between 11200 and 11480


Key support and resistance levels on the Nifty

According to pivot charts, the key support levels for the Nifty is placed at 11,259.47, followed by 11,201.63. If the index moves up, the key resistance levels to watch out for are 11,406.17 and 11,495.03.

Nifty Bank

The underperformance of Bank Nifty against Nifty50 continued on September 8 also, falling 200.65 points to 22,744.40. The important pivot level, which will act as crucial support for the index, is placed at 22,569.13, followed by 22,393.87. On the upside, key resistance levels are placed at 22,991.93 and 23,239.46.


Stocks in the news :  

IRCTC: The government plans to sell about 15-20 percent stake in IRCTC via offer for sale (OFS).


IDBI Bank: The lender has sold its remaining 0.21 percent stake or 10,25,683 shares of National Stock Exchange of India (NSE).


Future Consumer: The company reported a loss of Rs 68.37 crore in Q1FY21 against a loss of Rs 175.47 crore QoQ. Revenue from operations fell to Rs 380.5 crore against Rs 947 crore QoQ.


ICICI Prudential Life Insurance Company: New business premium grew to Rs 892 crore in August 2020 against Rs 849 crore in July.


Power Grid Corporation: Cabinet has approved asset monetisation of the company's subsidiaries via InvITs.


Indian Hume Pipe: Company has received Rs 134.82 crore water supply contract in Odisha.


FII and DII data

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 in the Indian equity market on September 8, as per provisional data available on the NSE.



Stock under F&O ban on NSE

Seven stocks -- Bank of Baroda, BHEL, Canara Bank, Indiabulls Housing Finance, Vodafone Idea, Jindal Steel & Power and Punjab National Bank -- are under the F&O ban for September 8. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.


MCX 

1. Crude oil futures down over 7%, WTI slips nearly 9% to trade at $36.27/barrel

2. Precious metal: MCX silver delivery touches 12-year high

3. Copper futures down 1.44% to Rs 521.90 per kg in evening trade

4. Gold prices rise marginally to touch Rs 51,075 per 10 gram; silver down by Rs 192

5. Natural gas futures down 0.32% to Rs 187.50 per mmBtu in afternoon trade

6. Silver futures remain steady at Rs 68,258 per kg on weak global cues

7. Nasdaq sinks 3% as tech rout deepens; Nymex crude falls 6.5%




YESTERDAY SEPT 8 MARKET CLOSING :


Market Closing:


Market declined from its intraday high on account of profit booking and concern of geo-political tension between India-China. 


Sentiment has been dampened after media news reported that tension between India and China have escalated on account of border related issue.  


Moreover, US Dow Future declined 1% from the high (Nasdaq Future slipped 2.5%)  and European market slides 1% after President Donald Trump stoked tensions with China and  Corona-virus cases across Germany and the U.K. 


Nifty slipped one-third of a percent (38 points) to close at 11317, while it has touched an intraday high of 11437. 


Bank Nifty slipped around 1% to conclude the session at 22744 levels. 


Banking, Metal, Auto, Telecom, Cement and Mid-cap stocks were major losers today. However, Tech stocks witnessed fresh buying. India Vix gained 3% to 22.72. 


Banking stocks like Axis Bank slipped 3% to close at Rs444. 


Kotak Bank, Bajaj Finance, SBI, LIC Housing, IndusInd Bank, RBL Bank declined by 2-4% from their intraday high. 


Reliance Industries gained 1% after the news that the company has started preliminary talks with Facebook Inc. and private equity fund KKR & Co. to make an investment in retail business according by media report.


 Metal stocks like Jindal Steel, JSW Steel, Hindalco and Vedanta slipped 2-4%. 


Telecom stocks like Bharti Airtel slipped over 3% to close at Rs498 and Idea declined 8% to close at Rs11.3. 


Tech stocks like TCS gained 1% to close at Rs2348 after the news that the company partnered with TPT South Africa for pioneering its logistics supply chain transformation. 


Wipro has gained over 1% to close at Rs282.5 after the news that the company has won a multi-year global automotive software engineering contract from Marelli.  


Infosys, HCL Tech, Tech Mahindra gained 1-2%. InfoEdge gained nearly 1% to close at Rs3314 after the company reported strong Q1 results and beat EBITDA margin. 


Bharat Dynamics slipped 14% to close at Rs331 after the news that the Government proposes to sell up to 15% stake through OFS at a floor price of Rs 330 per share.