Morning Action @ 7 AM – Monday, August 19th 2024

*Morning Action @ 7 AM – Monday, August 19th 2024*

# Gift Nifty takes over the positive baton from a strong finish at Wall Street in Fridays trade.

# Technically, all bullish eyes on Nifty biggest hurdles at 24630-24707 zone.

*7:00 AM GLOBAL UPDATE:*

• # GIFT Nifty 🇮🇳: (+79, 24669)
• # Dow Futures: (+28, 40688)
• # Nasdaq 100 Futures (+59, 19566)
• # Nikkei (-159, 37904)
• # Hang Seng (+140, 17570)
• # Dow Jones (+97, 40660)
• # Nasdaq (+37, 17632)
• # Bovespa (-200, 133953).

*MARKET TRENDS:*

• #  Global: Positive
• #  FII: Positive (+766.52 Cr)
• #  DII: Positive (+2606.18 Cr)
• #  Sentiment: Bullish
• #  Market Breadth: Positive
• #  Technicals: Rebound play
• #  F&O: 23900 – 25000 zone.
• #  INDIA VIX 14.40 (-6.74%)
• #  Nifty PCR (29th Aug) 1.37
• #  Bank Nifty PCR (28th Aug) 0.85
• #  Nifty Outlook: Nifty bulls shall get inspired by encouraging global cues.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

*Nifty Technically:*

• Nifty (CMP: 24541)
• SUPPORT: 24407/24205
• RESISTANCE: 24701/25100
• RANGE: 24450-24700
• BIAS: Positive
• 21 DMA: 24493
• 50 DMA: 24108
• 200 DMA: 22223

*Bank Nifty Technically:*

• BANK NIFTY (CMP 50516):
• SUPPORT: 50000/49651
• RESISTANCE: 51151/51951
• RANGE: 50300-51100
• BIAS: Neutral
• 21 DMA: 51003
• 50 DMA: 51325
• 200 DMA: 47890

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

• # In Friday’s trade, Wall Street climbed into positive territory as investors cheered this week’s encouraging economic data that showed inflation continued to cool and consumer spending remains resilient.
• # As for the main indexes, the Dow Jones was up 0.2% at 40,659, while the Nasdaq Composite (+0.2% at 17,631) and the S&P 500 (+0.2% to 5,554) both notched a seventh consecutive day of gains.
• # Next up is the Jackson Hole Economic Symposium, where Fed Chair Powell will deliver a highly anticipated speech on Friday.
• # Bottom-line: From here on, the street will spy with one big eye on the US September jobs report to be wired on September 6th.
• # Hopefully, this September unemployment report gets the Fed to cut interest rates by 50 basis points. Fingers crossed.
• # WTI crude futures  trade steady at $76.33 a barrel.
• # COMEX Gold trades with positive bias, now at $2,497.

*NEED TO KNOW:*

• # The positive takeaway from last week’s trade was that Nifty ended 0.71% higher and most importantly, snapped a two-week losing streak.
• # Bank Nifty ended a tad higher on weekly basis but the positive takeaway was that it snapped a five-week losing streak.
• # Much of the strength and rally at Dalal Street is on backdrop of steady SIP flows by retail investors. DIIs so far in August have net bought stocks worth Rs 31,450 crore. DIIs have reportedly invested Rs 2.92 lakh crore in Indian equities thus far.
• # The big question: Can Nifty notch a major win in today’s session?
• 
  # Well, Nifty is likely to lurch higher as bulls will aim to take over the positive baton from solid higher leads from Wall Street.
• # Bullish Nifty traders are likely to take a risk-on approach.
• #  In Friday’s trade, FIIs turned out to be net buyers to the tune of Rupees 767 crores while DIIs bought to the tune of Rupees 2606 crores.
• # Much of the strength and rally at Dalal Street is on backdrop of steady SIP flows by retail investors. DIIs so far in August have net bought stocks worth Rs 31,450 crore. DIIs have reportedly invested Rs 2.92 lakh crore in Indian equities thus far.
• # All bullish eyes now turn to Jackson Hole Economic Symposium, where the Fed Chair Powell will deliver a highly anticipated speech on Friday, August 23rd
• # We suspect Powell is likely to set the stage for the first rate cut in years!
• 
  # Hopefully, this September unemployment report gets the Fed to cut interest rates by 50 basis points.
• # Long story short: The running of Nifty bulls shall continue.
• # The positive catalysts: ‘Fear of slowdown & fear of inflation’ in the US is off the front pages.

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

• Nifty (24541): Buy at CMP. Stop at 24101. Targets 24630/24750. Aggressive targets at 24900-25100 zone.
• Bank Nifty (50517): Buy at CMP. Stop at 49301. Targets 50950/51137. Aggressive targets at 51900-52100 zone.

# Our chart of the day is bullish on AUROBINDO PHARMA, BAJAJ AUTO, NAUKRI and TVS MOTORS on any early weakness with an interweek perspective.

# The 1 stock to buy right now:

• BUY BAJAJ AUTO (CMP 9888): Buy at CMP. Stop at 9609. Targets  10050/10300. Aggressive targets at 10750. (Interweek Strategy). Rationale: Signaling a massive upside consolidation breakout. Momentum oscillators bullish.

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