Monday, October 26, 2020

Stock Market | Nifty , BankNifty Outlook 27 Oct 20


 Nifty and BankNifty, Stock Market Outlook 27 October 2020 

Nifty: 11768 -162
 BankNifty: 24075 -402

Stock Market Today 

👉 Indian equity benchmarks suffered sharp losses of over a percent on Monday, tracking heavy losses in index majors Bajaj Auto, Mahindra & Mahindra and Reliance Industries amid negative cues from global markets.

👉  Markets made slightly negative start as traders remained cautious with RBI Governor Shaktikanta Das’ statement that the risk of a second wave of COVID-19 could put sand in the wheels of the nascent recovery. He also said the decision to cut benchmark repo rate would depend upon the evolving situation with regard to inflation which is currently above the tolerance level of the central bank.

👉  Key gauges extended fall in the afternoon session, as anxiety remained among traders with report that as many as 441 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns of over Rs 4.35 lakh crore owing to delays and other reasons. 

👉 On the global front, Asian markets ended mostly in red,  as a recent global spike in coronavirus infections coupled with a stalemate over U.S. fiscal stimulus dashed hopes for an earlier-than-expected economic recovery. Traders are becoming increasingly pessimistic that U.S. lawmakers will pass a new stimulus package before next week's election. 

👉  European markets were trading lower, as survey data from ifo Institute showed German business sentiment weakened in October. The business climate index fell to 92.7 in October from revised 93.2 in September. The reading was below economists' forecast of 93.0. Assessment of current situation as well as expectations deteriorated in the month. Back home, on the sectoral front, Agriculture sector stocks were in focus as Prime Minister Narendra Modi said his government is taking initiatives to strengthen the agriculture sector in the country so that farmers do not have to face any trouble.

👉 Besides, Airline stocks were buzzing as the Directorate General of Civil Aviation (DGCA) has approved 12,983 weekly domestic flights of airlines for the winter schedule that begins on October 25, 2020 and ends on March 27 next year.

Nifty Outlook

On the Friday session Nifty closed near the higher end of the sideways zone and was expected  that today it may give breakout as the Nifty was in uptrend. But due to global market and Dow Future figures Nifty reacted very sharply and fell .

 Now  the Nifty remains in sideways zone so it can be volatile .  Nearest downside support is at 11661 level. If it rebounds from the lower level then again upside level of 12025 can be seen in the Nifty.

Friends as Nifty is in sideways zone so market may be volatile and up or down can be seen in the upcoming trading sessions. Results season can also add volatility in the market. In this week monthly future expiry will also execute . So there are many reasons indicating market may remain volatile in this week, so trade cautiously.

BankNifty Outlook

After the todays fall 24000 level is very important. If tomorrow Banknifty gives closing below the level of 24000 the immediate downside level of 23364 .
If Banknifty recovers from this level then upside level of 24696 can be seen .
BankNifty is more stronger than Nifty , so if recovery happens then prefer  buying BankNifty

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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