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HDFC Securities

Published on 29/10/2020 10:59:23 AM

Markets could open lower following negative Asian markets and sharply lower US markets on Wednesday - HDFC Securities

Indian markets could open lower following negative Asian markets today and sharply lower US markets on Wednesday.

US stocks tumbled Wednesday, putting all the three major indexes on track for their worst week since March 20, as a surge in COVID-19 cases in the U.S. and Europe heightened investor worries over the economic recovery. Investors also have begun to take precautions ahead of the Nov. 3 U.S. election while digesting third quarter corporate earnings reports

Global stocks came under heavy selling pressure Wednesday as Germany and France announced further restrictions on business activity in an effort to contain the rise in COVID-19 cases and the U.S. saw the number of new cases hit records.

Asian stocks were set to join a global sell-off on Thursday as worries about surging coronavirus cases in Europe and the United States sent investors scrambling for safe-haven assets. The Bank of Japan and European Central Bank are set to announce its interest rate decision and release its outlook report on Thursday

Indian equity benchmark indices reversed Tuesday's gains to end lower on October 28, dragged lower by selling pressure across the board. Nifty after opening almost flat soon started to fall and made an intraday low around 1400 Hrs. A feeble recovery followed. At close the NSE Nifty 50 index ended 1.34% lower at 11,729.

Uncertainty around US Presidential elections has succeeded in triggering a correction in global markets already reeling under Covid-19 spread. The level of 11661 remains a crucial support on the downside.

Bharti Airtel to stay away from 5G auctions, as prices exorbitant: Vittal

Bharti Airtel CEO Gopal Vittal said that the company would stay away from the 5G auctions, if they happened next year as the spectrum offered at the current prices were not affordable for the company.

“The 5G ecosystem is yet to develop here and the prices are very high and we can’t afford them,” Vittal said during the company’s post earnings call. He said that the company would not buy the airwaves at the current prices at the rates suggested by the Telecom Regulatory Authority of India (TRAI).

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HDFC Securities

Published on 29/10/2020 10:58:35 AM

Be Bearish With The Stoploss Of 11850 Levels - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

* Nifty fell sharply on the back of weak global cues where it fell by 160 points to close at 11730 levels

* Short build up was seen in Nifty Futures’ where Open Interest rose by 3% with Nifty falling by 1.3%.

* Short build up was seen in the Bank Nifty Futures too, where we have seen 5% rise in the Open Interest with Bank Nifty falling by 2.2%.

* Nifty Open Interest Put Call ratio fell sharply to 1.25 levels from 1.48 levels. Amongst the Nifty options (29-October Expiry), Call writing was seen 11800-11850 levels, Indicating 11850 level will act as a strong resistance going forward. On the lower side, support is seen around 11600 levels where we have seen addition in Puts.

* Short build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 1905 Cr with their Open Interest going up by 20713 contracts.

On the other hand, In the stock futures segment they have covered their shorts where they net bought worth Rs 1350 Cr with their Open Interest going down by 29911 contracts.

To Sum It Up, Short build up in the Nifty and Bank Nifty Futures, fall in the Nifty Open Interest Put Call ratio on the back of Call writing at 11800-11850 levels and short build up by the FIIs’ in the Index futures and Index Option segment Indicates that one should be cautious for the markets Therefore, our advise is to be bearish and use any pullback rally to build fresh short positions with the stoploss of 11850 levels.

On the lower side support is seen around 11600 levels where Puts have been written.

In the Bank Nifty, our advice is to remain bearish with stop loss of 24500 levels. On the lower side, support is seen in the vicinity of 23500-23800 levels

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HDFC Securities

Published on 28/10/2020 11:42:56 AM

Markets could open mildly lower following largely lower Asian markets and mixed US markets on Tuesday - HDFC Securities

Indian markets could open mildly lower following largely lower Asian markets today and mixed US markets on Tuesday.

US stocks on Tuesday finished mostly lower, a day after their worst decline in more than a month, as rising COVID-19 cases underlined worries about economic activity and lawmakers abandoned efforts to reach an agreement on a new round of fiscal spending before the Nov. 3 elections.

Equity markets struggled to gain traction Tuesday despite upbeat corporate earnings reports and merger news, against the backdrop of rising coronavirus cases globally. In U.S. economic reports, durable-goods orders rose a strongerthan-expected 1.9% in September.

India’s economy picked up speed in September as a revival in demand and business activity helped drive it toward recovery from the pandemic-induced slump. Five of the eight highfrequency indicators, including exports, tracked by Bloomberg News improved last month, while three were steady. That helped move the needle on a dial measuring the so-called ‘Animal Spirits’ to 5 from 4 in August -- a level arrived at by using the threemonth weighted average to smooth out volatility in the singlemonth readings.

Morgan Stanley expects MSCI India to see passive inflows worth $2.5 billion, and its weight in MSCI Emerging Market to increase to 8.7% from 8.1%. MSCI India’s free float factor, according to the research, will increase to 43.2% from 40%

Indian stocks provide a good hedge in portfolios ahead of the U.S. presidential election, thanks to a domestically-oriented economy. That’s according to UBS Group AG’s wealth-management arm and State Street Global Markets, which are among firms recommending Indian shares even beyond the Nov. 3 vote.

Asian markets remain lower in mid-week trade as concerns linger about the impact of the worsening Covid-19 cases in some parts of the world.

Indian benchmark equity indices regained some of the previous session losses on Oct 27. At close the Nifty was up 121.60 points or 1.03% at 11,889.40. In the process the Indian markets outperformed all the other Asian markets. Possible fund inflows due to the MSCI rejig kept the sentiments buoyant in India.

Nifty bounced up on Oct 27. The next band of resistance for the Nifty is 11942-11975. Negative advance decline ratio suggests caution in the broader market and possibility that the positive sentiments arising out of MSCI rejig may not last long.

 

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HDFC Securities

Published on 28/10/2020 11:42:11 AM

Accumulate Long Positions With The Stoploss Of 11800 Levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

* Nifty recouped most of the Monday’s fall by rising by 122 points to close at 11889 levels

* Long build up was seen in Nifty Futures’ where Open Interest rose by 5% with Nifty rising by 1%.

* Long build up was seen in the Bank Nifty Futures too, where we have seen 5% rise in the Open Interest with Bank Nifty rising by 2.9%.

* Nifty Open Interest Put Call ratio rose sharply to 1.48 levels from 1.20 levels. Amongst the Nifty options (29-October Expiry), Put writing was seen 11800 levels, Indicating 11800 level will act as a strong support going forward. On the higher side, resistance is seen in the vicinity of 12000-12050 level where Calls have been written earlier

* Short build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 1116 Cr with their Open Interest going up by 11376 contracts. On the other hand, In the stock futures segment they have created fresh longs where they net bought worth Rs 2442 Cr with their Open Interest going up by 8690 contracts.

To Sum It Up, Long build up in the Nifty and Bank Nifty Futures, rise in the Nifty Open Interest Put Call ratio on the back of Put writing at 11800 levels and long build up by the FIIs’ in the Index futures and Index Option segment Indicates that one should be optimistic for the markets Therefore, our advise is to be bullish and use any correction to build fresh long positions with the stoploss of 11800 levels.

On the higher side resistance is seen in the vicinity of 12000-12050 levels where Calls have been written

In the Bank Nifty, which closed at seven month high yesterday, our advice is to create fresh long positions with stop loss of 24300 levels. On the higher side, resistance is seen in the vicinity of 25000-25200 levels

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Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795
SEBI Registration number is INZ000171337

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