Pre Stock Market Report, October 29, 2020

 

We are coming to the end of October series.

It is a 5 week series with corporate results.

Usually this kind of series will be highly volatile.

Nifty moved from 10800 to 12000 in two weeks and then consolidating between 11660 and 12025 with huge volatility.

There were violent sell off in intraday many times.

Even yesterday Nifty fell more than 250 points intraday.

Bank Nifty in last two days, up 200, then down 500, then up 900, then down 900 and up 200.

US and European markets fell more than 3% yesterday due to corona virus surge.

FIIs have sold for Rs 1131 crores in Cash market.

Considering the kind of fall in markets, this figure is not big.

Markets got into panic mode when Europe fell drastically in the afternoon.

Right now SGX Nifty is trading about 60 points lower.

There will be more selling if Nifty breaks 11660.

In US, VIX crossed 40.

That is not a good sign for bulls.

In last 15 minutes, Dow fell more than 200 points.

Most European markets are trading at June level.

Remember our June level is Nifty 9500.

MSCI rebalancing may bring 18 billion and that news may cap the downside here.

Axis Bank results are in line with expectation.

But after good results, stocks have been falling.

With that tradition, Axis Bank may fall.

Asian markets are all in Red.

But we have already factored in some extent yesterday, so we may not fall as much as Asian markets.

But intraday panic may be there.

Nifty future may trade between 11620 and 11780.

Nifty 11800CE and 11900CE added huge OI.

Bank Nifty may come under more pressure.

Recent low of 23900 should be a good support.

source : PR | ET | ST | MC