Market Outlook: The selloff in tech stocks led US markets to close in red by 2-3%

From Advisory Desk: Vikash Sahay

24th September 2020 : Market Outlook; The selloff in tech stocks led US markets to close in red by 2-3%. Asian markets too felt the heat of global sell off and thus are trading 2% lower. FIIs have been the sellers for the last 3 consecutive day’s amounting over Rs 6500 cr. Silver is down by 5% and Gold is down by 2%. Yesterday last hour pull back in Nifty of 100 points seems to be short lived as SGX indicating a gap down of 125 points. Today being an expiry we expect Nifty to be in the range of 10900-11200 and Bank Nifty to be in the range of 20500-21500. Markets may continue selling pressure while major support at 10800 which is 200 DMA level.

Gold Finance: The Gold Rush!
We are initiating coverage on Manappuram Finance with a ‘Buy’ rating and TP of INR185 (1.8x FY22E BVPS). We have also upgraded Muthoot Finance to ‘Buy’ with a TP of INR 1300.

Global market:
DOW: -525
SGX NIFTY: -120 (prev.close 11134)
NIFTY 50 : 11131
Sensex : 37668

FII: -3912 Cr
DII: +1629 Cr

Advances: 1181 / Declines: 1451

Dollar: $ 73.57

Gold: $1866 per ounce
Crude: $41.40 per barrel

10 year US bond rate: 0.67
10 year Indian Bond rate: 5.98


Sun pharma: Sun pharma to voluntarily recall of RIOMET ER ( metformin hydrochloride) to the consumer level due to the level of NDMA which has been found to be above the allowable acceptable daily intake limit established by USDFA.

Securities in Ban: IBULHSGFIN

Derivative View : VIX closed at 20.99. Max Put OI is at 11100 then 11000. Max Call OI is at 11200 then 11300. Option data suggests a wider trading range between 11000 to 11300.

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