Nifty 50 Intraday Trade Setup for 12th October 2020

12 thg 10, 2020

Good Morning friends,

Nifty is damn bullish and given an awesome run in upside move since 2 weeks. Momentum and direction both are strong in upside and Index can make a new all-time high in midterm but the Problem is we are the Intraday trader and buy or sell both are our position because of the nature of the Trade so let's talk about today trade. The main question is Does the nifty bullish run will be continued or will see a profit-booking in today's trading session. let's talk about the key factor first.

Key Factors
============
1-The RBI in an affidavit, filed before Supreme Court in the loan moratorium case, said that it would not be possible to give more time as a relief for sectors hit by the coronavirus pandemic. RBI said a long moratorium exceeding six months can impact the credit behavior of borrowers and increase the risks of delinquencies post resumption of scheduled payments. It may result in vitiating the overall credit discipline which will have a debilitating impact on the process of credit creation in the economy.
2-The Directorate General of GST Intelligence's Gurugram Zonal Unit has arrested a Delhi resident on charges of setting up and operating fictitious firms on forged documents and passing fake ITC totaling Rs 190 crore through issuance of invoices without actual receipt or supply of goods and services.
3-China has amassed more than 60,000 troops on India's northern border, US Secretary of State has said as he hit out at Beijing for its "bad behavior" and the threats it poses to the Quad countries.
4-The finance ministry said taxpayers are required to report in the annual GST return of 2018-19 only the values of transactions pertaining to that financial year.
5-The issue price for the sovereign gold bond has been fixed at Rs 5,051 per gram of gold . The Scheme 2020-21 Series VII will be opened for subscription from October 12 to October 16.
6-RBI has decided to make the RTGS system available round the clock on all days from Dec.
7-India registered over 60,262 new Covid-19 cases, taking the tally to 6,964,074 and the death toll reached 107,142
8-The country's foreign exchange reserves reach a life-time high of $545.638 billion in the week ended October 2, 2020.
9-The monetary policy committee unanimously decided to keep policy rates unchanged in the bi-monthly policy meets for October, while the RBI said the worst was possibly over for the economy and the focus must now “shift from containment to revival.
10-The tax collection remains muted. Direct tax, net of refunds, contracted by 24 % as of Oct 8 to Rs 3.66 trillion compared with Rs 4.8 trillion in the corresponding period last year.

Global Market
======================
1-US30 aks DOW still steady and bullish in the short and mid-term. The index is trading on 28620 which is only 40 points low from the previous closing. Overall us market sentiment is still bullish .
2-European stocks posted a second consecutive week of gains on Friday as bumper forecasts from Denmark's Pandora and Novo Nordisk set a brighter tone for the earnings season, while investors kept an eye out for signs of fresh U.S. stimulus. The STOXX 600 index ended up 0.6%to close the week with a gain of 2.1%
3- Asian Market has a mixed view.

Intraday Trade Setup
===========================

Long: Intraday always tricky and has very little room. Long can build if Friday high break which is 11940. Stop-loss should be 11900 and Target is Open.
Short: As you can see the stairs which were used by nifty for to entire run since 25th September. These lines are so Important if you talk about short Positions. These are also Intraday and short-term support so consider short only if any support breaks in Intraday. Today Important Level for short is 11850, sl should be 11900 and Target is Open.

Disclaimer: I am not a SEBI Registered Research Analyst and all the information provided here is for educational purposes Views are shared based on market research and study and personal in nature. Others can take different views and opinions.

Good Luck and Happy Trading
Virendra Pandey