Amid neutral global markets, futures & options (F&O), positive foreign institutional investors (FIIs), domestic institutional investors (DIIs) and sentiments cues, the short-term trend of the Indian stock markets will be positive on Monday, October 5, 2020.
Benchmark domestic stocks on Thursday, October 1, 2020, gained more than one and a half per cent amid positive global cues. The Sensex at Bombay Stock Exchange climbed 629 points, or 1.65 per cent, to close at 38,697. The Nifty at National Stock Exchange also surged 169 points, or 1.51 per cent, to settle at 11,417. The 50-unit index has risen 1.73% in two days. Bank Nifty gained 794 points, or 3.70 per cent, to settle at 22,246.
The broader market at BSE underperformed the Sensex. The Mid-cap rose 0.73 per cent and Small-cap appreciated 0.69 per cent. The risk appetite also improved as the central government on Wednesday issued new guidelines for opening up of more activities in areas outside the containment zone.
The sentiment is Strong: 10 Reasons
1. Strong purchase of FIIs, index net long 66 per cent.
2. TCS buyback, big investments in Reliance.
3. Improving Trump’s health.
4. Dow Futures Strong.
5. Corona patient reduced in the last four days, AstraZeneca vaccine trial resumes.
6. Strong GST Collection in September.
7. Strong figures for auto sales.
8. Talks with China again on October 12.
9. Great strength in rupee, a 6 per cent decrease in VIX.
10. Last week’s strong closing.
– Trump is behind in the election, confusion over US relief package.
-Supreme Court verdict on Moratorium.
– Enhanced PCR at 1.55.
-Short coverings over, new purchase needed.
Zee Businesss Managing Editor Anil Singhvis Market Strategy for October 5:
Day support zone on Nifty is 11,250-11,350 and the day higher range is 11,500-11,575.
Day support range on Bank Nifty is 21,950-22,050, below that 21,475-21,675 strong support zone.
Day higher range on Bank Nifty is 22,450-22,650, above 22,800-23,000 is profit booking zone.
The small day range for trading on Nifty is 11,400-11,475, while the medium and bigger ranges are 11,350-11,525 and 11,300-11,575, respectively.
The small day range for trading on Bank Nifty is 22,075-22,450, while the medium and bigger ranges are 21,950-22,650 and 21,700-22,800, respectively.
FIIs Net Index long increased to 66% Vs 56%.
Put-Call Ratio (PCR) 1.55 Vs 1.34, India Volatility Index (VIX) down 6% at 18.93.
For Existing Long Positions:
Nifty intraday stop loss is 11,350 and closing stop loss is 11,225.
Bank Nifty intraday stop loss is 22,000 and closing stop loss is 21,900.
For Existing Short Positions:
Nifty intraday and closing stop loss are 11,450.
Bank Nifty intraday and closing stop loss are 22,500.
For New Positions:
Buy Nifty with a stop loss of 11,350 and target 11,450, 11,500, 11,525, 11,575.
Sell Nifty in 11,575-11,625 range with a stop loss of 11,700 and 11,525, 11,500, 11,450.
Buy Bank Nifty with a stop loss of 22,000 and target 22,450, 22,575, 22,650, 22,800.
Sell Bank Nifty near 22,650 with a stop loss of 22,800 and target 22,575, 22,475, 22,300, 22,250.
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