# The US Friday’s NFP shall steal the show as that will determine how big will the Fed rate cut be?

*Morning Action @ 7 AM – Monday, September 2nd 2024*

# This Monday morning, Gift Nifty is aiming to take over the positive baton from a strong close at Wall Street in Friday’s trade indicating bullish consolidation to be the preferred trade for benchmark Nifty.

# As a reminder, Monday is stock market holiday with both the US equities and bond markets closed for Labor Day.

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+41, 25433)
# Dow Futures: (-63, 41500)
# Nasdaq 100 Futures (-29, 19545)

# Nikkei (+250, 38898)
# Hang Seng (+9, 17795)

# Dow Jones (+228, 41563)
# Nasdaq (+197, 17714)
# Bovespa (-37, 136004).

MARKET TRENDS:
# Global: Positive
# FII: Positive (+5318.14 Cr)
# DII: Negative (-3198.07 Cr)
# Sentiment: Bullish
# Market Breadth: Positive
# Technicals: Overbought zone
# F&O: 24000 – 25500 zone.

# INDIA VIX 13.39 (-2.90%)
# Nifty PCR (26th Sept) 1.51
# Bank Nifty PCR (25th Sept) 0.99

# Nifty Outlook: Bullish consolidation shall be the preferred theme for benchmark Nifty.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 25236)
SUPPORT: 25137/24963
RESISTANCE: 25551/26000
RANGE: 25150-25400
BIAS: Positive
21 DMA: 24613
50 DMA: 24440
200 DMA: 22507

Bank Nifty Technically:
BANK NIFTY (CMP 51351):
SUPPORT: 50713/50100
RESISTANCE: 52000/52350
RANGE: 50700-51500
BIAS: Positive
21 DMA: 506667
50 DMA: 51538
200 DMA: 48278

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

# The biggest positive takeaway from Friday’s trade at Wall Street was that the Dow Jones index rallied hard to a new record closing high.

# The Positive Catalyst: The Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, increased 0.2% month-on-month and 2.5% year-on-year, matching street’s expectations.

# The Dow Jones index rose 228 points, or 0.6%, marking its fourth record close of the week. The S&P 500 rose 1%, while the Nasdaq Composite was up 1.1%. The S&P has also risen in four-straight months.

# The Dow rose 1.8% in August, while the S&P 500 rose 2.3% and the Nasdaq rose 0.6%. The biggest positive takeaway was that Nasdaq’s shocking turnaround, given the Nasdaq entered correction territory early in the month and the S&P 500 and Dow both had their worst day since 2022 on Aug.

# The PCE data bolsterers hopes for Fed rate cuts this September 18th

# WTI Oil futures tumble near $73 per barrel.

# COMEX Gold consolidates near $2503 per ounce. Please note, Gold prices are up more than 22% for the year to date.

NEED TO KNOW:

# This Monday Morning, the cake is already baked for solid gains for benchmark Nifty…

# The Positive catalyst: Wall Street jumping out of the gate as the Fed’s Preferred Inflation Gauge is on track for September Rate Cuts!

# Keeping optimism alive at Dalal Street will be the fact that the WTI crude futures declined by 3.1% in Friday’s trade to settle at $73.5 per barrel amidst possibility of rise in OPEC+ supply.

# The positive takeaway from last week’s trade was that FIIs net bought Rs 9,217 crore worth of shares.

# Investors will now brace for August US jobs report which will be released on Friday, September 6. This NFP will provide the next major test for the stock market.

# The US Friday’s NFP shall steal the show as that will determine how big will the Fed rate cut be?

# Meanwhile, the highly anticipated initial public offer (IPO) of Bajaj Housing Finance is all set to open between September 9th to 11th; to raise Rs 6,560 crore. (The price band will be issued on September 3 while the anchor portion will be on September 6th )

# Traders will react to the August sales numbers of Auto stocks which trickle in from September 1.

# Keeping optimism alive at Dalal Street will be the fact that the WTI crude futures declined by 3.1% to settle at $73.5 per barrel on Friday amidst possibility of rise in OPEC+ supply.

# Meanwhile, Reliance Industries has failed to gain traction after Bonus Share Issue, Growth Guidance. RIL had ended 0.74% lower in Friday’s trade.

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

Nifty (25252): Buy at CMP. Stop at 24789. Zone. Targets 25350/25551. Aggressive targets at 25750-26000 zone.

Bank Nifty (51351): Buy at CMP. Stop at 50451. Targets 51357/51750. Aggressive targets at 52100-52500 zone.

# Our chart of the day is bullish on DRREDDYS LAB, PERSISTENT SYYSTEMS, COFORGE and NTPC on any early weakness with an interweek perspective.

# The 1 stock to buy right now:

Buy NTPC (CMP 416): Buy at CMP. Stop at 401. Targets 427/435. Aggressive targets at 445. (Interweek Strategy). Rationale: Momentum oscillators in bullish mode. Signaling a massive upside breakout.

 

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