The directional trend remains bullish but technically, confirmation of strength only above Nifty 25301 mark.

*Morning Action @ 7 AM – Monday, October 14th 2024*

# Gift Nifty is seen trading cautiously higher after Wall Street enjoyed strong session in Friday’s trade.

# *The trading theme revolves around the upcoming US presidential election, uncertainty about the pace of Federal Reserve rate cuts and escalating geopolitical risks in the Middle East.*

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+49, 25122)
# Dow Futures: (-35, 42828)
# Nasdaq 100 Futures (-44, 20228)

# Nikkei (CLOSED, 39606)
# Hang Seng (-23, 21228)

# Dow Jones (+410, 42864)
# Nasdaq (+61, 18343)
# Bovespa (-361, 129992).

MARKET TRENDS:
# Global: Positive
# FII: Negative (-4162.66 Cr)
# DII: Positive (+3730.87 Cr)
# Sentiment: Bullish
# Market Breadth: Positive
# Technicals: Oversold conditions
# F&O: 24000 – 26000 zone.

# INDIA VIX 13.22 (-2.07%)
# Nifty PCR (31st Oct) 0.99
# Bank Nifty PCR (30th Oct) 0.87

# Nifty Outlook: Positive start. Positive session is likely.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 24964)
SUPPORT: 24694/24413
RESISTANCE: 25301/25701
RANGE: 24900-25150
BIAS: Positive
21 DMA: 25477
50 DMA: 25051
200 DMA: 23226

Bank Nifty Technically:
BANK NIFTY (CMP 51172):
SUPPORT: 50771/50194
RESISTANCE: 51851/52319
RANGE: 50900-51600
BIAS: Positive
21 DMA: 52497
50 DMA: 51529
200 DMA: 49228

*WHAT EXACTLY HAPPENED AT WALL STREET IN FRIDAY’S TRADE:*

# Wall Street ends Friday’s session with strong gains as the Dow Jones Industrial Average and S&P 500 gained 1% and 0.6%, respectively, both hitting all-time closing highs, while the Nasdaq Composite added 0.3%.

Wall Street key indices have recorded weekly gains for five consecutive weeks, boosted by optimism about the outlook for the U.S. economy and corporate earnings.

# COMEX Gold bounce towards $2645 per ounce.

# WTI OIL prices inches lower towards $74.30 a barrel.

NEED TO KNOW:

# In last week’s trade, Nifty ended 0.20% lower as cautious trading prevailed all-thru the week. Nifty ended below the psychological 25000 mark.

Blame the caution on Foreign investors who turned net sellers in October, to the tune of Rs 58,450 crore in the month so far amidst:

1) Escalating conflict between Israel and Iran.
2) A sharp rise in crude oil prices
3) Strong performance of the Chinese market.

# The Good News: Bullish action is likely to be the preferred theme for benchmark Nifty:

# The directional trend remains bullish but technically, confirmation of strength only above Nifty 25301 mark.

# The positive catalyst: September PPI report released on Friday suggests that progress is being made on taming inflation indicating the US economy remains on a glide path for a soft landing.

# In Friday’s trade, FIIs turned out to be net sellers to the tune of Rupees 4163 crores.

So far in October, Foreign investors are net sellers to the tune of Rs 58,450 crore.

# Q2 Corporate India results to trickle in today & tomorrow:

Monday, October 14th: HCL TECH, RELIANCE
Tuesday, October 15th: HDFC AMC, HDFC LIFE, PVR INOX, RALLIS.

# This week, Tuesday, October 15th, all bullish eyes will be on the much-awaited Hyundai Motor India’s Rs 27,870-crore IPO.

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

Nifty (24964): Buy on dips between 24850-24900 zone. Stop at 24573. Zone. Targets 25151/25301. Aggressive targets at 25600-25750 zone.

Bank Nifty (51172): Buy between 51100-51300 zone. Stop at 49911. Targets 51500/51801. Aggressive targets at 52500-52900 zone.

# Our chart of the day is bullish on EXIDE, NALCO and HINDALCO with an interweek perspective.

# The 1 Stock to Buy Right Now: (Buy NALCO: CMP 223): Establishing long positions at CMP and on any corrective declines between 195-203 zone should be the preferred trading strategy, targeting 237/250 zone and then aggressive targets seen at 265 zone. Stop below 171. Holding Period: 9-12 Months.

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*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.