WHAT CAUGHT OUR EYE AT 9 AM:  SGX Nifty unfazed by positive global indices

9 AM UPDATE:

DOW FUTURES (+94, 26301)

NASDAQ FUTURES (+41, 7736)

SGX NIFTY (-09, 10710)

NIKKEI (+45, 20673)

HANG SENG (+95, 26144)

SHANGHAI (+10, 2893)

The key themes of the day

Sentiments are down at Dalal Street— primarily as hopes of stimulus are dimming. Chief Economic Adviser (CEA) Krishnamurthy Subramanian on Thursday virtually ruled out a major stimulus package for the economy, saying “profit is private, losses are public” was not good economics.

There is negativity also on backdrop of indications that the U.S. Federal Reserve last month wasn’t aggressively looking to cut interest rates in the world’s largest economy.

Again and again, the U.S bond market is signalling a recession. The closely watched 2-year Treasury note rate rose above its longer-term counterpart in the 10-year Treasury not, representing an inversion of the bond-market yield curve. Yields have clearly inverted and that makes perma-bull investors increasingly anxious as the said gauge has preceded the past seven recessions.

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. 10,656crores in the month of August. FIIs were net sellers in yesterday’s trading session as they sold shares worth Rs. 903 crores.

Tumbling equities and incessant foreign fund outflows are also weighing on sentiment at Indian Rupee. The Indian Rupee has crashed to over 8-month low of 71.81.Blame it also to the sudden drop in Chinese yuan.

STOCKS TO WATCH:

• BULLISH STOCKS: TECHM, TCS, DIVISLABS.

• BEARISH STOCKS: SBIN, VEDL, ICICIBANK, TATAMOTORS, RELIANCE.

All about stocks (F&O Trades):

• BANK OF INDIA (CMP 62.40): Sell at CMP. Targets 60/51. Stop 67.45.

• SUNT TV (CMP 415): Sell at CMP. Targets 407/401/387. Stop 437.

• JUBILANT FOODS (CMP 1106): Sell at CMP. Targets 1091/1071/977. Stop 1181.

All about stocks (Medium Term Sell Trades):

• PAGE INDUSTRIES(CMP 17677): Sell at CMP. Targets 16500/15000/12387. Stop 20105.

• KOTAK BANK (CMP 1478): Sell at CMP. Targets 1440/1339. Stop 1511.

• VOLTAS (CMP 598): Sell at CMP. Targets 579/557.50. Stop 615.

SHOW ME THE MONEY:

• Option Trade: SELL NIFTY 29th AUGUST CE Strike Price 10900 at CMP 38.45. Maximum Profit: Rs. 2,883.75. Loss: Unlimited. Stop: Exit Call option if Nifty moves above 10885. (Nifty August Futures CMP 10732).

Bulls Vs. Bears: Time to Pick a Side!!

Bulls Vs. Bears: Time to Pick a Side!!

Caution to prevail.

Preferred trade on Nifty (10741):Sell between 10801-10855 zone. Targets at 10501/10001. Stop 11089.

Preferred trade on Bank Nifty (27034):Sell at CMP. Targets at 26701/24251. Stop 28451

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