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Stock Market Daily Updates: 30 July 2020

BW 2020-07-30 00:00:00

Indications are in the favor of further profit-taking but any meaningful correction would be a buying opportunity in quality frontline blue-chip stocks only

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Dear Trader

On Wednesday 29th July 2020, after the recent rally in the case of Nifty future, the resistance zone of 11303 - 11373 has proved to be a key hurdle zone,

The bear’s trend took control on Wednesday, a rise in coronavirus cases and mixed earnings from India Inc capped the upside and today promises to be equally exciting as traders would roll over their positions from July series to August 2020.

On the daily chart, we expect the market is likely to remain volatile due to the derivatives expiry of July 2020, combined with earnings and the short-term momentum indicator is showing a negative divergence, which is a bearish sign.

The Nifty will see a deeper correction once the lower end of the range breaks, traders will be better off remaining neutral and turn buyers on dips towards the range of 11101 to 11088 points.

At the start of intra-day trading, the Nifty futures opened at 11253 points against the previous close of 11222 on 30th July On the fourth day of the week, the Indian stock market started trading higher. Investors expect the government to increase exemptions in the wake of Corona's unlock-3, as well as tensions between India and China over the continued positive report on corona vaccine manufacturing.

In the domestic currency market, the rupee opened at 74.83 against the dollar in the opening session on Wednesday and closed at 74.80 in the last session. The dollar has weakened due to ongoing tensions between the US and China. Apart from that, US bond yields are at a low point and this is the reason why the demand for bullion has increased. Gold and silver prices have risen sharply amid the COVID - 19 epidemic and geopolitical tensions over the commodity sector.

The price of silver has doubled in the last four months. The price of silver on the MCX on March 15, 2020, was around Rs 33580, which has risen to Rs 67560.  Gold and silver prices are likely to rise further in the near future.

Friends, as the monsoon is showing good progress in the country, the current year is also likely to see good growth in the agro-rural sector. The country's economic growth is expected to accelerate through higher growth in the sector in the event of a recovery from the Corona era.

On the international front, China's NBS manufacturing PMI for July will be released on July 31, while in Europe, the euro area's inflation for July will be released on July 31, 2020. Investors will keep an eye on events such as companies' earning commentary and the impact of the coronavirus on the economy and reports on the corona vaccine. Apart from this, factors such as fluctuations in crude prices and the rupee's movement against the US dollar will also be on the lookout for the Indian stock market.

Indications are in the favor of further profit-taking but any meaningful correction would be a buying opportunity in quality frontline blue-chip stocks only, so we advise booking profits in existing longs and wait for clarity to trend.

Nifty Future opened at 11253 as on 29.07.2020

For Intraday, Nifty Future has resistance at 11272 – 11303 Point; above which other resistance levels are at 11330 – 11373 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 11202 – 11188 Point; below 11188 Point, other support levels are at 11130 – 11101 Point.

I am positive for the next bullish trend only above at 11303 Point but be with the trend. Let the market decide further moves. As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario

Regarding Long term positions, it is preferable to remain cautious now

If Nifty Future crosses at 11303 Point, again then the upper side target is quite high and it may touch at 11330 Point in the short term 

Bank Nifty Future opened at 22090 as on 29.07.2020

For Intraday, Bank Nifty Future has resistance at 22170 – 22202 Point; above which other resistance levels are at 22272 – 22373 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 22008 – 21888 Point; below 21888 Point, other support levels are at 21808 – 21717 Point.

I am positive for the next bullish trend only above at 22373 Point but be with the trend. Let the market decide further moves. As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario

Regarding Long term positions, it is preferable to remain cautious now

If Bank Nifty Future crosses at 22373 Point, again then the upper side target is quite high and it may touch at 22404 Point in the short term

Prediction on Stock specific Movement as on 29.07.2020

DIVIS LAB FO @ RS 2433

Positive Trend @ Rs 2416 / 2404 with Stop loss of Rs @ 2388 for the target near @ Rs 2460 - 2474 in short term

TCS LTD FO @ RS 2288

Positive Trend @ Rs 2288 / 2260 with Stop loss of Rs @ 2247 for the target near @ Rs 2308 - 2330 in short term 

INDIGO FO @ RS 890

Positive Trend @ Rs 890 / 873 with Stop loss of Rs @ 868 for the target near @ Rs 909 - 922 in short term 

INFOSYS FO @ RS 960

Positive Trend @ Rs 960 / 948 with Stop loss of Rs @ 940 for the target near @ Rs 973 - 982 in short term

MUTHOOT FIN FO @ RS 1355

Negative Trend @ Rs 1355 / 1370 with Stop loss of Rs @ 1388 for the target near @ Rs 1327 – 1313 in short term 

GRASIM FO @ RS 616

Negative Trend @ Rs 616 / 630 with Stop loss of Rs @ 640 for the target near @ Rs 608 – 598 in short term

BHARAT PETRO FO @ RS 440

Negative Trend @ Rs 440 / 454 with Stop loss of Rs @ 460 for the target near @ Rs 427 – 418 in short term 

RELIANCE FO @ RS 2116

Negative Trend @ Rs 2116 / 2144 with Stop loss of Rs @ 2160 for the target near @ Rs 2096 – 2088 in short term

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