Dalal St Daily 23rd October

 GLOBAL MARKETS

  • US markets closed higher on positive note.
  • DOW Jones was up by 0.5%.
  • U.S. lawmakers were still trying to hammer out a roughly $2 trillion stimulus deal late on Thursday, with U.S. House Speaker Nancy Pelosi saying that she and Treasury Secretary Steven Mnuchin had not spoken during the day.
  • U.S. economic data surprised to the upside, as jobless claims fell more than expected and existing home sales exceeded estimates to more than a 14-year high.
  • The United States was also on the brink of a widespread coronavirus outbreak, with nearly two-thirds of states in a danger zone with six reporting record one-day increases in COVID-19 deaths on Wednesday.
  • Now the last round of Presidential debate is going on in US.
  • Joe Biden seems to be winning the debate. (Just my judgment, I may be wrong)
  • "Anyone responsible for 200K death does not deserve to be a President", "I have shown my Income Tax documents for 22 years, you show me just one" are some of the statements making impact.
  • European markets were mixed
  • European markets closed flat on Thursday.
  • S&P500 Vix is dropping.
  • US dollar index futures were up  by 0.38% @ 92.950
  • Crude is trading around $40.
DOMESTIC MARKETS
  • Asian markets have opened flat and with slight modest gains.
  • SGX Nifty is trading flat 11 points lower @ 11881.
  • Trends on SGX Nifty indicate a flat start for the broader index in India. US markets ended higher on Thursday in choppy trading, while Asian markets are trading flat.
  • Yesterday Nifty was trading in a very tight range bound market.
  • Until the zone of (11829-11790) on the downside is not broken rally and breaking the zone of the (11972-12025) in the coming session is for sure.
  • My gut feeling says now Nifty is all set to rally and break the zone of and target the 12400.
  • Nifty is finding some huge support near 11800 everytime when it touches.
  • We are entering into the last week of october series which may bring up some pressure on the market.
  • Volatility may continue and we can expect profit booking at higher levels.
  • Everyone are worried about the stimulus but no one is worried about the natural calamities happening in the country. The heavy rains across the country is causing havoc.
  • Remember India is land of farming. Heavy rains will definitely cause the prices of commodities to rise and the business will be tough to run during the rain. Heavy rains will cause farmers to loose the grown crops. This will reduce the export and rise the price in commodities in domestic market. This is definitely not good for the stock market and FMCG stocks. 
  • DIIs have sold for Rs 2020 crores in Cash market.
  • This huge selling by DIIs has to stop for Nifty to move beyond 12K.
  • Nifty may still consolidate in these zones in coming sessions.
  • The broader markets outperformed frontline indices as the Nifty Midcap index was up 0.6 percent and smallcap index gained 1 percent.
  • Nifty will be highly volatile today.
TRADING RANGE    
  • Nifty may trade between 11720-12000
  • Bank Nifty may trade between 23800-25146.
***** Bank Nifty will be the monster today in the market.

OI ANALYSIS

CALLS
  • Maximum Call open interest of 35.84 lakh contracts was seen at 12,500 strike.
  • Call writing was seen at 12,500 strike
  • Call unwinding was seen at 11,600 strike
PUTS
  • Maximum Put open interest of 24.85 lakh contracts was seen at 11,500 strike
  • Put writing was seen at 11,800 strike.
  • Put unwinding was witnessed at 12,500 strike.
FII & DII ACTIVITY
  • Foreign institutional investors (FIIs) net bought shares worth Rs 1,118.46 crore
  • domestic institutional investors (DIIs) net sold shares worth Rs 2,019.87 crore in the Indian equity market on October 22.
**** In 4 days DII has sold more than 7000 crore serious panic is going on in the market.

RESULTS DECLARING ON OCTOBER 22
  1. Tech Mahindra
  2. Nestle
  3. JSW Steel




Thank You

SHARATH R

Location: Bengaluru, Karnataka, India

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