Gift Nifty rebounds post Nasdaq’s solid recovery…

*Morning Action @ 7 AM – Thursday, September 12th 2024*

# Gift Nifty is trading comfortably in the green indicating a positive higher start for benchmark Nifty.

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+113, 25092)
# Dow Futures: (-37, 40824)
# Nasdaq 100 Futures (-17, 17220)

# Nikkei (+980, 36604)
# Hang Seng (+69, 17177)

# Dow Jones (+125, 40861)
# Nasdaq (+370, 17396)
# Bovespa (+357, 134677).

MARKET TRENDS:
# Global: Positive
# FII: Positive (+1255 Cr)
# DII: Positive (+230.90 Cr)
# Sentiment: Risky
# Market Breadth: Negative
# Technicals: Consolidation
# F&O: 24000 – 25500 zone.

# INDIA VIX 13.62 (+1.95%)
# Nifty PCR (26th Sept) 1.50
# Bank Nifty PCR (25th Sept) 0.80

# Nifty Outlook: Bulls likely to regroup at lower levels.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 24918)
SUPPORT: 24753/24641
RESISTANCE: 25334/26000
RANGE: 24800-25050
BIAS: Neutral/positive
21 DMA: 24887
50 DMA: 24646
200 DMA: 22725

Bank Nifty Technically:
BANK NIFTY (CMP 51010):
SUPPORT: 50369/49653
RESISTANCE: 51755/52357
RANGE: 50500-51500
BIAS: Neutral
21 DMA: 50947
50 DMA: 51370
200 DMA: 48573

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

# Wall Street had initially sold-off sharply in Wednesday’s morning session after a mixed August inflation report but a rally in Nasdaq helped equities rebound by session’s end.

# At the closing bell, the Dow Jones was up 0.3% at 40,861, while the broader S&P 500 gained 1.1% to 5,554. The tech-heavy Nasdaq Composite rallied 2.2% to end at 17,395.

# Traders braced for a probability of only a smaller Fed rate cut on September 18th.

# The headline US Consumer Price Index for the month of August was pegged at an annual rate of 2.5%, down from the 2.9% pace recorded in June.

# Strictly speaking, at first glance, the initial selloff at Wall Street did not make much sense as the inflation has cooled considerably compared to prior highs.

# Perhaps the sell-off at Wall Street was on backdrop of Chinese concerns which are adding fuel to market fears of a U.S. recession.

# Bottom-line: Investors will be looking to the release of US producer-price numbers to gauge how fast the Federal Reserve is set to bring down interest rates.

# WTI Oil futures inches higher towards the $67.46 per barrel.

# COMEX Gold consolidates near $2514 per ounce.

NEED TO KNOW:

# In yesterday’s trade, Nifty traded with negative bias and most importantly, ended below the psychological 25000 mark.

# The positive take away however was that FIIs turned out to be net buyers to the tune of Rupees 1255 crores.

# Now, the stocks which are on the front pages and catching attention:

1) Government has approved the PM E-Drive Scheme with an outlay of Rs 10,900 crore for two years to boost adoption of electric vehicles in India, replacing FAME programme that ran for nine years till March.

The scheme will support 24.79 lakh electric two-wheelers, 3.16 lakh e-three wheelers, and 14,028 e-buses. The PM E-DRIVE will also support 88,500 charging sites. (Source: Business Standard)

2) The plunge in WTI Oil futures near the $66 per barrel (its lowest level since May 2023), are seen benefiting stock price of paint companies like Asian Paints and Berger Paints as lower oil prices translate to higher operating margin for paint-makers.

3) Airline stocks like INDIGO too was nicely bid on backdrop of fall in oil prices.

4) Alternatively, on concerns over a weak oil demand outlook, ONGC & Oil India are receiving fresh drubbing.

5) Persistent Systems stock price is in limelight, and most importantly, are flirting with its all-time-high at Rs 5,370.95 per share after the company signed an asset purchase agreement with SoHo Dragon to acquire some of its assets.

 

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

Nifty (24918): Buy between 24800-24850 zone. Stop at 24559. Zone. Targets 25100/25334. Aggressive targets at 25750-26000 zone.

Bank Nifty (51010): Buy between 50500-50700 zone. Stop at 50101. Targets 51500/51755. Aggressive targets at 52357-53000 zone.

# Our chart of the day is bullish on BERGER PAINTS, OFSS, SYNGENE INTERNATIONAL, PERSISTENT SYSTEMS and BRITANNIA on any intraday weakness with an interweek perspective.

# The 1 Stock to Buy Right Now:

Buy PERSISTENT SYSTEMS (CMP 5290): Buy between 5245-5260 zone. Stop at 5101. Targets 5389/5457. Aggressive targets at 5750. (Interweek Strategy). Rationale: Higher high/low. Momentum oscillators bullish.

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