Bulls will now aim that Nifty conquers 26,000 milestone on closing basis.

*Morning Action @ 7 AM – Wednesday, September 25th 2024*

# Gift Nifty treads water indicating bullish consolidation ahead for benchmark Nifty as optimism revolves around Dow Jones and the S&P 500 indices which hit new record highs.

# Also on backdrop are positivity surrounding China’s stimulus measures.

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (-57, 25926)
# Dow Futures: (-100, 42108)
# Nasdaq 100 Futures (-43, 19902)

# Nikkei (+45, 37986)
# Hang Seng (+592, 19592)

# Dow Jones (+84, 42208)
# Nasdaq (+100, 18075)
# Bovespa (+1587, 132156).

MARKET TRENDS:
# Global: Positive
# FII: Negative (-2784.14 Cr)
# DII: Positive (+3868.31 Cr)
# Sentiment: Bullish
# Market Breadth: Positive
# Technicals: Higher high/low
# F&O: 25000 – 26500 zone.

# INDIA VIX 13.39 (-2.9%)
# Nifty PCR (26th Sept) 1.28
# Bank Nifty PCR (25th Sept) 1.15

# Nifty Outlook: Nifty 26000+

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 25940)
SUPPORT: 25800/25709
RESISTANCE: 26100/26500
RANGE: 25900-26100
BIAS: Positive
21 DMA: 25291
50 DMA: 24867
200 DMA: 22969

Bank Nifty Technically:
BANK NIFTY (CMP 53969):
SUPPORT: 53650/53100
RESISTANCE: 54500/55300
RANGE: 53700-54500
BIAS: Positive
21 DMA: 51934
50 DMA: 51429
200 DMA: 48941

 

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

# Wall Street traded with positive bias and most importantly, ended Tuesday’s trade on a bullish note as the S&P 500 and the Dow Jones indices eked out new record highs.

Investors cheered China’s latest round of stimulus measures and shrugged off the negative catalyst like the Consumer Confidence Index which fell to a lower-than-anticipated 98.7 in September, down sharply from the August reading of 103.3.

# WTI Crude oil trades firm at the $71.45 per barrel.

# COMEX Gold trades firm at $2657 per ounce.

# Copper futures have hit the highest levels in over two months at $4.35 per pound after top consumer China unveiled a slate of easing measures to support the economy.

NEED TO KNOW:

# Dalal Street finally got its historic Nifty 26,000 milestone.

# Sensex too hit its psychological 85,000 mark.

# This time the big positive catalyst and the upbeat news strangely came from China following a wave of stimulus announcements.

# On backdrop also continued to be the ‘Fed’s Momentous Jumbo Rate Cut’.

# Our call of the day which suggests Nifty 26000 or Sensex 85000 are just milestones along the way, and definitely not a destination.

# The Nifty options data suggests Nifty is likely to be in a trading range of 25000-26500 zone. Maximum Call OI is at 27000 followed by 26000 strike prices. So, the 27000 mark is now Nifty’s major resistance zone.

Maximum Put open interest stands at 25000 levels followed by 25500 levels.

Call writing was seen at 26000 and then at 27000 strike price, while there was meaningful Put writing at 25900 and then at 26000 strike prices.

# In yesterday’s trade, FIIs turned out to be net sellers to the tune of Rupees 2784 crores while DIIs bought shares to the tune of Rupees 3868 crores.

# Long Story Short: Bull will now aim that Nifty conquers 26,000 milestone and Sensex closes above the 85,000 on closing basis.

# Copper futures have hit the highest levels in over two months at $4.35 per pound after top consumer China unveiled a slate of easing measures to support the economy.

# Meanwhile, after inaugural Fed rate cut, focus turns to US PCE inflation to trickle on Friday, September 27th

# Buzzing stocks:

1) M&M stock price hit new high at Rs 3099 as its market-cap nears Rs 4 trillion; zooms 100% in 10 months.

2) Indian Energy Exchange (IEX) tumbled 11.5% following reports that the Centre is considering the implementation of market coupling for power exchanges.

3) Shares of AstraZeneca Pharma zoomed 17% higher after the government gave a nod to import Durvalumab drug, used in treatment of liver and gall bladder cancers.

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

Nifty (25940): Buy between 25850-25900 zone. Stop at 24655. Zone. Targets 26013/26101. Aggressive targets at 26300-26500 zone.

Bank Nifty (53969): Buy between 53650-53850 zone. Stop at 52903. Targets 54350/54500. Aggressive targets at 55000-55300 zone.

# Our chart of the day is bullish on UBL, TRENT, COLPAL and TATA POWER on any intraday weakness with an interweek perspective.

# The 1 Stock to Buy Right Now:

Buy UBL (CMP 2157): Buy at CMP. Stop at 2083. Targets at 2177/2221. Aggressive targets at 2278. (Interweek Strategy). Rationale: Signaling a massive upside consolidation breakout. Higher high/low.

 

*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.

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