Monday, October 19, 2020

Nifty and BankNifty, Stock Market Outlook 20 October 2020


 Nifty and BankNifty, Stock Market Outlook 20 October 2020 

Nifty: 11873 + 111
 BankNifty: 24266 + 733

Stock Market Today 

On the global front, Asian markets ended mostly higher on Monday, while European markets were trading mostly in green, on the back of optimism about a U.S. stimulus package before the presidential elections in November and a coronavirus vaccine before the end of this year. Some support also came with the Ministry of Finance said Japan posted a merchandise trade surplus of 674.978 billion yen in September. 
That was shy of expectations for a surplus of 989.8 billion yen, but still up from the 248.3 billion yen surplus in August. Besides, China’s Industrial production jumped 6.9 percent from a year earlier in September - beating forecasts for a gain of 5.8 percent and up from 5.6 percent in August. 
Retail sales climbed an annual 3.3 percent, exceeding expectations for a rise of 1.8 percent following the 0.5 percent gain in the previous month. Fixed asset investment was up an annual 0.8 percent to date in September, matching forecasts following the 0.3 percent fall a month earlier. However, the National Bureau of Statistics said China's GDP grew 4.9 percent year-on-year in the third quarter of 2020, missing forecasts for a gain of 5.2 percent but still up from 3.2 percent in the three months prior.

Back home, on the sectorial front, majority of auto stocks were trading in red with SIAM’s report that passenger vehicle exports from India declined 57.52 per cent in April-September period of the current fiscal year as COVID-19 related disruptions hampered dispatches to various global markets.
 Real estate stocks were also buzzing as the Reserve Bank of India rationalized the risk weightage to LTV (loan to value) ratio for all new housing loans sanctioned up to March 31, 2022, in a bid to increase flow of credit to the real estate sector.
 Also, there was some reaction in power stocks with the government data showing that India's power consumption grew 11.45 per cent to 55.37 billion units (BU) in the first half of October this year, mainly driven by buoyancy in industrial and commercial activities.

Nifty Outlook


Friends as discussed in the previous weekly outlook article that 11948 is a strong resistance for Nifty in short term and today Nifty closes near 11873 level. 

Now a  angular channel resistance is seen on charts at todays high of 11896 . 
If Nifty crosses above it then 11948  can be seen in upside otherwise 11806 is a strong support in downside for tomorrow. After the strong rally tomorrow a small correction can be seen but do not take short position in this correction as trend of Nifty is still strong in upside.

BankNifty Outlook


As discussed yesterday in weekly outlook that Banknifty can test 24278 level in upside and today Banknifty tested this level in a single day.

Now after a strong rally Banknifty strong momentum can be paused tomorrow and Banknifty can trade in a narrow zone. 23919 is a strong support and 24448 is a strong resistance for Banknifty for tomorrow .Trend is still strong avoid any short positions. 

Thanks for your Precious Time.

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Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website. We are not SEBI registered financial advisor or analyst.

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