Thursday, October 15, 2020

Nifty and BankNifty, Stock Market Outlook 16 October 2020

  

 Nifty and BankNifty, Stock Market Outlook 16 October 2020 

Nifty: 11680 -291
 BankNifty: 23072 -802

Stock Market Today 

On the global front, Asian markets ended lower on Thursday, as fading hopes of U.S. fiscal stimulus, Brexit woes, the U.S.-China tussle and fresh lockdown restrictions in parts of Europe dented risk appetite. Meanwhile, the People's Bank of China said in a statement that it has injected 500 billion yuan ($74.48 billion) worth of medium-term loans into the banking system and kept borrowing costs unchanged for the sixth straight month. 

European markets were trading lower, as surging coronavirus infections across Europe as well as tightened restrictions to battle the second wave of infections dampened the prospects for economic recovery. Back home, aviation stocks remained in focus with aviation regulator DGCA’s statement that a total of 3.94 million domestic passengers travelled by air in September this year, 66 per cent lower than the corresponding period last year. Banking stocks also were in watch as RBI data showed bank credit growth decelerated on a year-on-year basis for the sixth successive quarter and stood at 5.7 per cent in the three months to June 2020.

Finally, the BSE Sensex fell 1066.33 points or 2.61% to 39,728.41, while the CNX Nifty was down by 290.70 points or 2.43% to 11,680.35.

The BSE Sensex touched high and low of 41,048.05 and 39,667.47, respectively and there 1 stocks advancing against 29 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index lost 1.75%, while Small cap index was down by 1.45%.

The top losing sectoral indices on the BSE were Telecom down by 3.54%, Bankex down by 3.31%, Energy down by 3.10%, Finance down by 2.86% and TECK down by 2.75%, while there were no gaining sectoral indices on the BSE.

The lone gainer on the Sensex was Asian Paints up by 0.32%. On the flip side, Bajaj Finance down by 4.68%, Tech Mahindra down by 4.32%, Indusind Bank down by 3.94%, ICICI Bank down by 3.91% and SBI down by 3.60% were the top losers.

Nifty Outlook


As discussed yesterday that Nifty will trade in a range bound in the first half and in the second half Nifty will start falling and market traded whole day on our expectation. Now Nifty today clearly came out from the sideways zone and gave downside breakout with good volume. Now downside opened in Nifty.

But due to sharp fall a short covering can be expected in Nifty tomorrow but do not take long position.  As now Nifty trend is negative and  in every bounce or short covering short position can be created in Nifty for the downside level of 11561.


BankNifty Outlook


As discussed yesterday that BankNifty will trade in a range bound in the first half and in the second half BankNifty will start falling and market traded whole day on our expectation. Now BankNifty today clearly came out from the sideways zone and gave downside breakout with good volume. Now downside opened in BankNifty.

A sharp short covering can be expected in BankNifty tomorrow due to todays sharp fall. But overall trend is negative and in every bounce or short covering short position can be created in BankNifty for the downside level of 22500.



Thanks for your Precious Time.


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