US stocks see another day of big falls, however Nasdaq recovers smartly from lows as Apple leads the pullback. Dow Jones closes down 509 points after being down nearly 950 points intra day, Nasdaq closes flat after being down over 250 points. Bond yields fall to 0.65% even as Gold prices also tumble hitting 2 month lows.
Asian markets opened weak even after the sharp pullback overnight in US stocks. The undertone remains cautious as Europe sees some Countries lockdown for the 2nd time as Covid cases jump which could hurt economic activity with trade, leisure & travel being biggest losers. Locally Chinese data due this week could see some resilience in the economy which could see some action on Chinese mid caps stocks.
The Nifty saw the index plunge over 250 points as weak global cues & Dow Jones futures trading lower by almost 600 points saw bears dominate the day. Banks, metals & auto stocks took a pounding as markets saw very weak breadth as mid caps also joined the capitulation. With expiry of derivative contracts for September this week expect more intra day volatility as local mutual funds see selling pressure on redemption pressure.
Trading Ideas (Time period: 1-7 days)
QUESSCORP (Buy at Rs404-408, Target Rs434, Stop Loss Rs394):
On the daily chart, the price has moved above the previous swing high and so far sustained above it. Weekly RSI is in a bullish crossover. The set up is conducive for further up move in the near term. Hold long positions with mentioned stop loss.
Trading ideas (Time period: 1-14 days)
Sell Adani Port September future at Rs345-348, Stop Loss Rs353.5 & Target Rs339.
Derivative Strategies (Time period: Hold till expiry)
BUY Cipla September future at Rs767-773, Stop Loss Rs754.75 & Target Rs785.