There is welcome news for the Nifty bull’s camp who have been eagerly waiting for an interest-rate cut.

Morning Action @ 7 AM – Thursday, August 22nd 2024

# GIFT Nifty is climbing higher as Nifty bulls aim for 5^th day of straight gains after minutes from the Federal Reserve’s July meeting confirmed that central bank officials are closer to cutting rates.

*7:00 AM GLOBAL UPDATE:*

• # GIFT Nifty 🇮🇳: (+76, 24891)
• # Dow Futures: (-3, 40887)
• # Nasdaq 100 Futures (+12, 19837)
• # Nikkei (+336, 38288)
• # Hang Seng (+107, 17498)
• # Dow Jones (+56, 40890)
• # Nasdaq (+102, 17919)
• # Bovespa (+376, 136464).

*MARKET TRENDS:*

• #  Global: Positive
• #  FII: Negative (-799.74 Cr)
• #  DII: Positive (+3097.45 Cr)
• #  Sentiment: Bullish
• #  Market Breadth: Positive
• #  Technicals: Rebound play
• #  F&O: 24000 – 25500 zone.
• #  INDIA VIX 13.33 (-3.55%)
• #  Nifty PCR (29th Aug) 1.35
• #  Bank Nifty PCR (28th Aug) 0.90
• #  Nifty Outlook: Bulls are likely to be everywhere.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

*Nifty Technically:*

• Nifty (CMP: 24770)
• SUPPORT: 24649/24444
• RESISTANCE: 24907/25100
• RANGE: 24700-24950
• BIAS: Positive
• 21 DMA: 24502
• 50 DMA: 24214
• 200 DMA: 22307

*Bank Nifty Technically:*

• BANK NIFTY (CMP 50686):
• SUPPORT: 50333/50000
• RESISTANCE: 51151/51951
• RANGE: 50300-51300
• BIAS: Positive
• 21 DMA: 50751
• 50 DMA: 51399
• 200 DMA: 48006

*WHAT EXACTLY HAPPENED AT WALL STREET IN OVERNIGHT TRADE:*

• # As on Wednesday’s close, the Dow Jones index closed up 0.1% at 40,890, the S&P 500 added 0.4% to 5,620, and the Nasdaq  Composite gained 0.6% to 17,918.
• # According to CME Group’s FedWatch Tool, futures traders are now pricing in a 61.5% chance the Fed will cut interest rates by a quarter-percentage point in September.
• The odds of a 50 basis-point cut (0.50%) jumped to 38.5% from 29% Tuesday’s trade.
• # Next up: Chairman Jerome Powell is scheduled to speak more on the Fed’s monetary policy at the Jackson Hole Economic Symposium on Friday.
• # WTI Oil futures slumps below $72 per barrel on reports of cease-fire talks in Gaza and concerns about weakening demand, particularly from China.
• # COMEX Gold steady at  $2513 per ounce. Please note, Gold prices are up more than 20% for the year to date.

*NEED TO KNOW:*

# This Thursday Morning, there is welcome news for the Nifty bull’s camp who have been eagerly waiting for an interest-rate cut.

# The Positive catalyst: FOMC Minutes indicate that the Federal Reserve is set to cut rates in September.

# All bullish eyes now turn to Jerome Powell’s Jackson Hole speech on Friday at 10:00 AM ET.

# All eyes and ears will be tuned in to see if Powell:

1) Confirms a rate cut is coming in September
2) And if so, by how much
3) Or if it sounds like it may get postponed until November.

# Bottom-line: Nifty is likely to be in top gear with the next goal post at its all-time-high at 25078.30 mark.

# Long story short: Nifty is likely to trade on the front foot and hopefully, the string of gains shall continue for the 5th day in a row.

# The Gyan Mantra: Make hay while the sun shines…

1. Nykaa was up 10% in yesterday’s trade and most importantly, hit a two-year high of Rs 228.30 as traders welcomed their Q1 announced; reporting 152% YoY jump in net profit of Rs 13.6 crore for the quarter ended June 30, 2024 (Q1FY25).

• Larsen & Toubro (+0.59%, 3594) was in limelight after bagging ‘large’ order for integrated infrastructure development project in town planning schemes 2 to 7 under the Navi Mumbai Airport Influence Notified Area (NAINA) Project in Maharashtra.

# Now, here is the preferred trade on Nifty and Bank Nifty:

• Nifty (24770): Buy at CMP. Stop at 24309.  Zone. Targets 24900/25100. Aggressive targets at 25300-25500 zone.
• Bank Nifty (50686): Buy at CMP. Stop at 49701. Targets 51137/51500. Aggressive targets at 51900-52100 zone.

# Our chart of the day is bullish on NTPC, COAL INDIA, LARSEN  and TVS MOTORS on any early weakness with an interweek perspective.

# The 1 stock to buy right now:

BUY NTPC (CMP 409): Buy at CMP. Stop at  393. Targets  415/423. Aggressive targets at 439. (Interweek Strategy). Rationale: Momentum oscillators turning bullish. Signaling a massive rebound.

*Disclaimer:* This does not construe to be an investment advice. Stock market investments are subject to market risks. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this platform being used for actual investments. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.