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Pre Stock Market Report, September 18, 2020

 


  1. US markets closed lower but off the lows.
  2. When our markets closed here, Dow futures was down about 300 points.
  3. But Dow closed about half of that only.
  4. Yet Asian markets are trading with negative bias.
  5. SGX Nifty is almost flat.
  6. Bank Nifty is still not seeing any meaningful recovery.
  7. But at the same time, it is not falling much also.
  8. Bank Nifty taking support in the range 22200-22300.
  9. Rest of the series may continue to go for consolidation.
  10. Markets have been Highly Volatile for quite some time now.
  11. Yesterday Expiry was also the same.
  12. Directionless markets with high Volatility.
  13. Plus SEBI rules creating panic & volume changes in the Exchange.
  14. Traders should be very Cautious while dealing with such type of markets.
  15. The simple Strategy to Trade in such markets is to buy gap downs and sell gap ups.
  16. Buy Drawdowns and sell rallies.
  17. Buy Drawdowns and sell rallies.
  18. FIIs and DIIs both were net sellers in Cash market yesterday.
  19. DIIs have sold for more than 1068 crores.
  20. Now this is a big Number.
  21. Monthly Expiries can be even more Volatile & then some trending move might be witnessed by Tuesday Afternoon.
  22. But who knows, when everything looks negative, people will cover the shorts and that can trigger a short covering rally.
  23. Yesterday Nifty was down but not out.
  24. Buying came at lower levels.
  25. Maruti shot up nearly Rs 150 from the lows.
  26. Some Asian markets are recovering and trading in Green while I am writing this report.
  27. Nifty has to cross 11580 and Bank Nifty 22700 for further upside.
  28. Until then it is going to consolidate in narrow range.
  29. September has been a high volatile month.
  30. Usually high volatile months will see a huge trending in the last week on either side.
  31. I am expecting 250-300 point move next week.
  32. That is very much possible if Bank Nifty see some short covering.
  33. For today, it may be just consolidation.
  34. Reliance has broken 2300 on the downside.
  35. That is a key stock to watch for market direction.
  36. HDFC Bank helping Bank Nifty to stabilise.
  37. Nifty future may trade between 11480 and 11600.
  38. IT & Reliance continue to be the Pillars of the Market.
  39. I'm neither a Bull nor a bear as of now.
  40. Nifty might Trade between 11460 to 11620 today.

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