Good Morning & Welcome to Tuesday's trading action at Dalal Street, dated 27th August 2019

This Tuesday, bullish bets are likely to be the trading theme at Dalal Street as traders are seen betting that the U.S-China trade deal is not yet dead.

Another booster for our stock markets: RBI Central Board Accepts Bimal Jalan Committee Recommendations; Approves Surplus Transfer To Govt.

7 AM GLOBAL UPDATE:

DOW (+270, 25899)

NASDAQ (+102, 7854)

SGX NIFTY (+19, 11072)

NIKKEI (+233, 20494)

HANG SENG (+36, 25715)

BOVESPA (-1238, 96430)

OIL (-0.83, $53.34)

GOLD (+19, $1556)

USD/INR: 72.02

INSTITUTIONS:

FII: - 752.90 Cr

DII: + 1272.29 Cr

SUCCESSFUL INVESTING IS ANTICIPATING THE TRENDS OF:

Global: Positive.

FII: Negative.

DII: Positive.

F&O: Neutral.

‪Trend:‬ Neutral.‬‬‬

Sentiment: Neutral.‬‬‬

NIFTY’s CRUCIAL LEVELS:

Nifty’s CURRENT MARKET PRICE: 11,058.

Nifty’s SUPPORT:

Intraday: 10981/10854.

Medium Term: 10637, 10201.

Long Term: 8,951.

Nifty’s RESISTANCE:

Intraday: 11189/11201.

Medium Term: 11547/11701.

Long Term: 12,001.

Nifty’s RANGE:

Intraday: 10971-11145.

Medium Term: 10501-11501.

Long Term: 9501-11701.

Nifty’s OUTLOOK:

Intraday: Neutral.

Medium Term: Neutral.

Long Term: Neutral.

IMPORTANT THEMES FOR THE DAY:

SGX Nifty continues to spark optimism on reports that President Donald Trump said China wants to return to the negotiating table, in the wake of another round of tariffs announced Friday by Beijing and Washington. Overnight, Wall Street bounced higher spurred by fresh optimism that the U.S and China could eventually patch up trade war tensions.

The president’s comments are good news. But a spokesman for China’s Foreign Ministry said he wasn’t aware of the calls.

Our call of the day suggests that Dalal Street gets its mojo back as the street is relieved after the enhanced surcharge on FPIs has been withdrawn. The government has also decided to withdraw enhanced surcharge levied on long and short-term capital gains. Removal of CSR violation as a criminal offense, delay in increase of registration fee on new vehicles, higher depreciation, measures to review scrappage policy, linking home loan and vehicle loan rates to repo rate, increase in liquidity support for HFC by Rs 10,000 crore and task force to finalize Rs 1,00,000 crore infra investments are the key positives.

Our chart of the day suggests establishing long positions in stocks like SRF, BAJAJ FINSERV and ACC with interweek perspective.

Technically, Nifty’s immediate hurdles at 11,201 mark. Traders are advised to establish aggressive long positions only above Nifty 11,201. Until Nifty clears 11,201 mark brace yourself for choppy water. Perma bulls please note that Nifty may regain 11,501 mark only on backdrop of U.S-China trade optimism.

Some caution is warranted as FIIs in the month of August have sold shares worth Rs. 13,146 crores. FIIs were net sellers in yesterday’s trading session as they sold shares worth Rs. 753 crores.

Expect volatility to be hallmark in next 3 trading sessions as there is the expiry of August futures & options contracts this Thursday.

Meanwhile, IDBI Bank stock is under F&O ban period on NSE

Outlook for Tuesday: Positive start. Stock specific activity will command attention.

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