Actionable: Buy TCS, Manappuram

From Advisory Desk 05th October 2020

Market Outlook: In the past week, US markets tumbled after US President contracted virus. However the Doctors at Walter reed signalled about President’s discharge in a day or two, which led Dow future to trade up by 200 points. Asian markets too started in green by a percent. SGX Nifty is indicating flat opening on Nifty. Over the weekend, a lot of positive developments took place like Auto sales number; TCS buy back and RIL new investors. Hence we expect markets to stay positive, if it stays above 11350.

Global market:
DOW: -134
SGX NIFTY: +90 (prev.close 11330)
NIFTY 50 : 11416
Sensex : 38697

Institution:
FII: +1632 Cr
DII: +259 Cr

NSE:
Advances: 1501 / Declines: 1183

Currency:
Dollar: $ 73.14

Commodity:
Gold: $1904 per ounce
Crude: $39.90 per barrel

Bonds:
10 year US bond rate: 0.70
10 year Indian Bond rate: 6.00

Update

Financial services: Supreme court hearing on interest on interest case for loans under moratorium period is scheduled today. Govt files affidavit says to waive ‘interest on interest’ on loans of up to ₹2 crore for six months through to the end of Aug ’20. Compound interest will be waived for specified categories.

IT Companies: US federal judge granted a preliminary injunction, ordering an immediate hold on Visa restrictions that announced on June 22 which temporarily banned entry of H1B and other non- immigrant work visa categories.

TCS: Board to consider Buyback on 7th October along with Q2 results.

Reliance industries: Global PE and Sovereign funds like TPG, GIC and Mubadala to invest combined amount of Rs.13,597 in Reliance Retail.

Dr reddy labs: Announces the launch of a generic version of Sapropterin Dihydrochloride Tablets for oral use in the US market which had a sales of $450 million.

Securities in Ban: VEDL

Derivative View : VIX closed at 18.35 Max Put OI is at 11200 then 11300. Max Call OI is at 11500 then 11400. Option data suggests a trading range between 11200 to 11600.

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