Good Morning & Welcome to Thursday's trading action at Dalal Street, dated 22nd August 2019.

Well, it always feels good to see the Dow Jones Industrial Average ending up more than 200 points. But the fact is that our stock markets are not going anywhere.

7 AM GLOBAL UPDATE:

DOW (+240, 26203)

NASDAQ (+72, 8020)

SGX NIFTY (-13, 10919)

NIKKEI (+76, 20695)

HANG SENG (-17, 26252)

BOVESPA (+1979, 101201)

OIL (+0.31, $55.99)

GOLD (-5, $1511)

USD/INR: 71.46

Institutions:

FII: + 770.81 Cr

DII: +353.97 Cr

SUCCESSFUL INVESTING IS ANTICIPATING THE TRENDS OF:

Global: Positive.

FII: Negative.

DII: Positive.

F&O: Negative.

‪Sentiment: Negative.‬‬

NIFTY’s CRUCIAL LEVELS:

Nifty’s CURRENT MARKET PRICE: 10,919.

Nifty’s SUPPORT:

Intraday: 10783/10751.

Medium Term: 10551, 10001.

Long Term: 9,251.

Nifty’s RESISTANCE:

Intraday: 11007/11077/11189.

Medium Term: 11501/11777.

Long Term: 12,001.

Nifty’s RANGE:

Intraday: 10901-11077.

Medium Term: 10701-11507.

Long Term: 10001-11901.

Nifty’s OUTLOOK:

Intraday: Negative.

Medium Term: Neutral.

Long Term: Neutral.

IMPORTANT THEMES FOR THE DAY:

In early action, SGX Nifty is seen sobbing — indicating that our stock markets will take the negative baton from yesterday’s trade. That’s despite a strong overnight close at Wall Street. The street is also ignoring President Donald Trump’s statement that the U.S. and China will ‘probably’ make a trade deal.

We suspect, a bout of stock-market volatility is likely here to stay at our stock markets as the market faces a number of challenges. Volatility will continue to be the hallmark at our stock markets unless there is:

1. A resolution soon of the trade tussle between the U.S. and China.

2. Rollback of some Budget measures like the income-tax surcharge on the super-rich.

You can also blame major part of negativity at Dalal Street to the FIIs camp who are simply seen dumping Indian shares; pulling out Rs. 9,753 crores in the month of August. FIIs were net sellers in yesterday’s trading session as they sold shares worth Rs. 771 crores.

Oil prices traded modestly higher Wednesday after the U.S. government reported a weekly decrease in domestic crude supplies, the first in three weeks.

Technically speaking, buying advised only above Nifty 11,201 mark. Well, technically, things could improve only if Nifty moves above its key hurdles at 11201. Until 11201 mark holds as resistance; pessimism will continue to be the buzzword at Dalal Street, taking Nifty below its recent low at 10782 mark. Below 10782, expect waterfall of selling in benchmark Nifty.

That brings us to our call of the day which suggests that battle lines have been drawn around Nifty index, and the derivative market is handsomely rewarding investors for choosing bearish sides.

Our chart of the day suggests establishing short positions in stocks like PAGE INDUSTRIES, BANK OF INDIA and JUBILANT FOODS with interweek perspective.

Outlook for Thursday: The stock market is a battle between bulls and bears, but at Dalal Street the bears are having edge.

(For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal

www.freepressjournal.in