Dalal St Daily 27th October
GLOBAL MARKETS
• US markets opened lower and fell into negative territory.
• Dow jones closed 650 points 2.2%lower.
• Stocks stumble Monday as the number of daily U.S. COVID-19 infections hit a record at the end of last week and a final agreement on a new round of aid to the economy remains elusive.
• S&P 500 posting its biggest daily decline in four weeks, as soaring coronavirus cases and uncertainty about a fiscal relief bill in Washington dimmed the outlook for the U.S. economic recovery.
• S&P 500 VIX is above 30. Now @ 32 which is a serious volatility in the market.
• European markets are bleeding due to surge in covid cases.
• Crude is under pressure due to supply climbs
• Crude ia trading @ $38
• Dollar index is moving lower below 93
• Dollar index futures are trading @ 92.898 which is good for Indian long term markets.
• All dollar currencies are seeing some bullishnes.
• rupee is down by 0.5 paisa.
DOMESTIC MARKETS
• Asian markets have opened lower.
• SGX Nifty is trading flat up by 20 points.
• India vix is @22
• Though the markets fell mearly 200 points India VIX did not rise much.
• The volatility in the market is increasing.
• 11972 level was touched multiple times and this is the 5th rejection from this level. And this might be the last sell off in the markets.
• If the markets starts to raly towards the 12000 once again we may see some breakout in the higher levels.
• All this volatility is because of stimulus, US elections, and surge in record breaking covid cases.
• Reliance dragged the market by 40 points in the early trade itself.
• All the pressure is due to earnings result this week.
• Usually if the stock is moving lower before the earnings short covering will be seen and if the stock is rallying before the earnings profit booking will be seen.
• Reliance is underperforming the markets for over a month. This may trigger a short covering soon
• Nifty is still in a range bound market till it breaks the low of 11650 level.
• The market started off the week on a negative note on October 26 as the benchmark indices as well as broader markets corrected more than 1 percent amid weak global cues, rising coronavirus infections in the United States and Europe, and delay in US stimulus package.
• The Nifty Metal and Auto corrected the most, down 3.5 percent and 3.2 percent respectively, while Bank, IT and Pharma were down 1-1.65 percent.
• In the technical perspective Nifty forms a bearish engulfing candle with no wick on the upside and a small wick on the downside. This bearish candle can bring bulls back from these levels.
• The Bank Nifty fell 402.80 points 1.65 percent to close at 24,075.
• Kotal Bank came out with good results.
• KOTAK Bank consolidated PAT was up 22% in Q2 to Rs.2942 Cr.
• Private sector lender Kotak Mahindra Bank’s consolidated net profit surged 22.4 per cent to Rs 2,947 crore in the quarter ending September 2020 (Q2), from Rs 2,407 crore in the same period last financial year aided by good growth in interest income and lower provisions.
• Banking stocks are coming out with good results once profit booking is done in the market expect the banking index to cross 25000 level soon.
• Kotal Bank was the top gainer in the NIFTY.
• Reliance was the major dragger in the market which contributed 70 points in the fall of Nifty.
• Bharti Airtel and Tata motors are coming out with their results today.
• There are no major events in the markets, so our markets may continue to follow the global cues.
• FII AND DII did not sell much and this sell off is from retail people due to profit booking in the markets. So markets may stabilise soon and bring Bulls back in the market.
TRADING RANGE
• NIFTY may trade between 11597 - 11936
• Bank nifty may trade between 23728-24421
OI ANALYSIS
CALLS
• Maximum Call open interest of 55.96 lakh contracts was seen at 12,500 strike
• Call writing was seen at 11,900 strike, which added 19.19 lakh contracts.
• Call unwinding was seen at 11,500 strike.
• FII's are buying heavily in the cash market but
• FII are short in futures and options. They have sold more Calls than PUTS
PUTS
• Maximum Put open interest of 33.16 lakh contracts was seen at 11,000 strike
• Put writing was seen at 11,400 strike
• Put unwinding was witnessed at 11,900 strike, which shed 7.22 lakh contracts
FII and DII ACTIVITY
• Foreign institutional investors (FIIs) net sold shares worth Rs 119.42 crore
• domestic institutional investors (DIIs) net offloaded shares worth Rs 979.16 crore
• US markets opened lower and fell into negative territory.
• Dow jones closed 650 points 2.2%lower.
• Stocks stumble Monday as the number of daily U.S. COVID-19 infections hit a record at the end of last week and a final agreement on a new round of aid to the economy remains elusive.
• S&P 500 posting its biggest daily decline in four weeks, as soaring coronavirus cases and uncertainty about a fiscal relief bill in Washington dimmed the outlook for the U.S. economic recovery.
• S&P 500 VIX is above 30. Now @ 32 which is a serious volatility in the market.
• European markets are bleeding due to surge in covid cases.
• Crude is under pressure due to supply climbs
• Crude ia trading @ $38
• Dollar index is moving lower below 93
• Dollar index futures are trading @ 92.898 which is good for Indian long term markets.
• All dollar currencies are seeing some bullishnes.
• rupee is down by 0.5 paisa.
DOMESTIC MARKETS
• Asian markets have opened lower.
• SGX Nifty is trading flat up by 20 points.
• India vix is @22
• Though the markets fell mearly 200 points India VIX did not rise much.
• The volatility in the market is increasing.
• 11972 level was touched multiple times and this is the 5th rejection from this level. And this might be the last sell off in the markets.
• If the markets starts to raly towards the 12000 once again we may see some breakout in the higher levels.
• All this volatility is because of stimulus, US elections, and surge in record breaking covid cases.
• Reliance dragged the market by 40 points in the early trade itself.
• All the pressure is due to earnings result this week.
• Usually if the stock is moving lower before the earnings short covering will be seen and if the stock is rallying before the earnings profit booking will be seen.
• Reliance is underperforming the markets for over a month. This may trigger a short covering soon
• Nifty is still in a range bound market till it breaks the low of 11650 level.
• The market started off the week on a negative note on October 26 as the benchmark indices as well as broader markets corrected more than 1 percent amid weak global cues, rising coronavirus infections in the United States and Europe, and delay in US stimulus package.
• The Nifty Metal and Auto corrected the most, down 3.5 percent and 3.2 percent respectively, while Bank, IT and Pharma were down 1-1.65 percent.
• In the technical perspective Nifty forms a bearish engulfing candle with no wick on the upside and a small wick on the downside. This bearish candle can bring bulls back from these levels.
• The Bank Nifty fell 402.80 points 1.65 percent to close at 24,075.
• Kotal Bank came out with good results.
• KOTAK Bank consolidated PAT was up 22% in Q2 to Rs.2942 Cr.
• Private sector lender Kotak Mahindra Bank’s consolidated net profit surged 22.4 per cent to Rs 2,947 crore in the quarter ending September 2020 (Q2), from Rs 2,407 crore in the same period last financial year aided by good growth in interest income and lower provisions.
• Banking stocks are coming out with good results once profit booking is done in the market expect the banking index to cross 25000 level soon.
• Kotal Bank was the top gainer in the NIFTY.
• Reliance was the major dragger in the market which contributed 70 points in the fall of Nifty.
• Bharti Airtel and Tata motors are coming out with their results today.
• There are no major events in the markets, so our markets may continue to follow the global cues.
• FII AND DII did not sell much and this sell off is from retail people due to profit booking in the markets. So markets may stabilise soon and bring Bulls back in the market.
TRADING RANGE
• NIFTY may trade between 11597 - 11936
• Bank nifty may trade between 23728-24421
OI ANALYSIS
CALLS
• Maximum Call open interest of 55.96 lakh contracts was seen at 12,500 strike
• Call writing was seen at 11,900 strike, which added 19.19 lakh contracts.
• Call unwinding was seen at 11,500 strike.
• FII's are buying heavily in the cash market but
• FII are short in futures and options. They have sold more Calls than PUTS
PUTS
• Maximum Put open interest of 33.16 lakh contracts was seen at 11,000 strike
• Put writing was seen at 11,400 strike
• Put unwinding was witnessed at 11,900 strike, which shed 7.22 lakh contracts
FII and DII ACTIVITY
• Foreign institutional investors (FIIs) net sold shares worth Rs 119.42 crore
• domestic institutional investors (DIIs) net offloaded shares worth Rs 979.16 crore
STOCKS COMING OUT WITH THEIR RESULTS
BHARTI AIRTEL, TATAMOTORS
THANK YOU
SHARATH R
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