Monday, October 19, 2020

NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 20 OCT 2020

After opening with a gap, the Nifty did not do much thereafter. We moved in a 50-70 point range. Today markets ended firmly in the Green despite profit booking witnessed in Autos & Pharma as we saw spirited buying in Financials with good support from the FMCG space.Market ended higher for the second consecutive session on October 19 with Nifty above 11850 supported by the financial, metal and FMCG stocks. At close, the Sensex was up 448 points at 40431, and the Nifty was up 110 points at 11873. As we inch closer to the US Elections the street is bracing towards volatile markets ahead.

The stock markets have had a stellar run over the last two weeks but now we expect some fatigue to creep in and advice approaching Street with caution. Sector rotation is very much visible in the markets and the coming days are likely to stay highly sector and stock specific. Nifty has a good support at 11700 and until we do not break that, we are in a positive territory. The resistance on the upside is at 12000. If we are unable to move past either level convincingly, we would be range bound and trading in this zone should be avoided.

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Resistance: 11900, 12000, 12100

Support: 11800, 11700, 11600

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