Market Outlook: After a selloff of more than 10% in US markets over the past few weeks

From Advisory Desk : Vikash Sahay

25th September 2020 : Market Outlook: After a selloff of more than 10% in US markets over the past few weeks, yesterday US markets closed in green by a mere gain of half a percent as talks of additional stimulus accelerates. Asian markets too were trading higher by half a percent, including SGX Nifty which was up by 70 points in early tick. FIIs have sold stock of Rs 8500 so far in the month of September. Nifty has corrected by 745 points in September series and Nifty rollover stood at 70.63% which is lower than the average rollover level of 78.82%. Though Nifty is trading at 200 DMA level but we remain cautious on the market and wait for confirmation of reversal.

Global market:
DOW: +52
SGX NIFTY: +65 (prev.close 10845)
NIFTY 50 : 10805
Sensex : 36553

Institution:
FII: -1886 Cr
DII: +189 Cr

NSE:
Advances: 583 / Declines: 2064

Currency:
Dollar: $ 73.90

Commodity:
Gold: $1867 per ounce
Crude: $41.97 per barrel

Bonds:
10 year US bond rate: 0.68
10 year Indian Bond rate: 5.99

Update:

Granules India: As per media reports, three global private equity companies namely KKR, Bain Capital, Blackstine have expressed preliminary interest in acquiring majority stake in the company.

Tata Consumer products: As per media reports, Board of the company has approved a proposal to explore an acquisition of the vending machine business from Coffee Day Enterprises ltd, which is seeking a valuation of about Rs. 2,000 cr.

IT companies: Accenture’s fourth quarter results were below estimates led by consulting segment. However, outsourcing growth seen at 7% YoY and strong order book. Management expects growth to pick up pre- covid levels from H1FY21 ( February 2020) and also sees strong demand for digital transformation spend.

Securities in Ban: NIL

Derivative View : VIX closed at 23.51. Max Put OI is at 10700 then 10500. Max Call OI is at 10900 then 11000. Option data suggests a wider trading range between 10500 to 11000.

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