Morning Action @ 7 AM – Thursday, October 24th 2024

*Morning Action @ 7 AM – Thursday, October 24th 2024*

# *In early action, Gift Nifty is seen struggling to keep its head above water as sentiments continue to remain extremely fragile considering the headwinds and pessimism that are lurking all over Dalal Street.*

# The trading theme revolves around overnight Wall Street’s drubbing as US stocks sold off for a third straight session amidst

1) Mixed quarterly earnings
2) Rising election anxiety
3) Downbeat housing data sparked another run out of risk assets.

 

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+7, 24496)
# Dow Futures: (-57, 42458)
# Nasdaq 100 Futures (+109, 20175)

# Nikkei (+65, 38170)
# Hang Seng (-184, 20576)

# Dow Jones (-410, 42515)
# Nasdaq (-296, 18277)
# Bovespa (-718, 129233).

MARKET TRENDS:
# Global: Negative
# FII: Negative (-5684.63 Cr)
# DII: Positive (+6039.90 Cr)
# Sentiment: Negative
# Market Breadth: Negative
# Technicals: Weakening momentum
# F&O: 24000 – 25000 zone.

# INDIA VIX 14.62 (+1.53%)
# Nifty PCR (31st Oct) 0.92
# Bank Nifty PCR (30th Oct) 0.86

# Nifty Outlook: Upside likely to be capped. Sell on strength.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 24436)
SUPPORT: 24350/23428
RESISTANCE: 24701/24900
RANGE: 24300-24650
BIAS: Negative
21 DMA: 25210
50 DMA: 25122
200 DMA: 23354

Bank Nifty Technically:
BANK NIFTY (CMP 51239):
SUPPORT: 50750/50194
RESISTANCE: 51713/52835
RANGE: 50500-51500
BIAS: Negative
21 DMA: 52098
50 DMA: 51714
200 DMA: 49375

*WHAT EXACTLY HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

# Wall Street witnessed another round of sell-off as at the closing bell, the blue-chip Dow Jones was down 1% to 42,514, while the broader S&P 500 declined 0.9% to 5,797. The tech-heavy Nasdaq Composite shed 1.6% to end at 18,276.

# Wall Street investors were still cautiously navigating the earnings season and gearing up for the presidential election.

# COMEX Gold consolidates near $2726 per ounce.

# WTI crude oil futures trading firm near $71.60 per barrel as traders monitor rising tensions between Israel and Iran. The street is anxiously watching for Israel’s response to a recent missile barrage from Iran and subsequent attacks by Tehran-backed proxies.

 

NEED TO KNOW:

When we were a child, flying a kite was almost a religion to most us.

We used to enjoy it thoroughly and we are sure it was one of the best stress-free exercise.

We always wanted that our kite should go higher and higher.

And like every other kid, we used to also feel depressed when our colorful kite used to get stuck in trees or on a wire.

The optimism kite, which was flying high on our markets, has also got stuck in a tree in yesterday’s trading session.

Kati Patang..?

True, like a kite stuck in a tree, our markets too cannot fly again, unless the benchmark Nifty pulls out a rabbit from its hat; unless we have some strong positive catalyst; unless we have the following two negative catalysts knocked off from the front page;

1) Corporate India’s Q2 earnings disappointment.

2) Intense FIIs selling (This October month, FIIs have pulled out over Rs 92,143 crore from Indian equities).

# This morning, Gift Nifty is pointing to losses.

# Please note, Nifty has ended in red for the 3-days in a row and since its recent top at 26277-mark Nifty is down massive 7%.

# In yesterday’s trade, Nifty witnessed the classic ‘Dead Cat Bounce’.

# Strictly speaking, ‘Dead Cat Bounce’ is a temporary price recovery following losses, that is followed by more losses.

# Technically, immediate downside risk on Nifty is placed at 24350 mark; aggressive downside targets are at Nifty’s 200 DMA at 23353 mark.

# The bears are likely to be everywhere and keeping bullish sentiments in check are 3-key negative catalysts:

1) The pessimists continue to bet the Fed will not cut interest rates as fast as initially anticipated.

2) Election risks are also starting to affect markets on backdrop of prospects of a Donald Trump presidential win.

3) US bond yields jump with the benchmark 10-year US Treasury note hitting 4.23% for the first time since late July.

# The fear index, India VIX, which gauges the volatility in the Indian stock markets, ended higher by 1.32% at 14.59 points.

# Q2 earnings reports to trickle in today: Thursday, October 24th:

BALKRISNA INDUSTRIES
BIKAJI
CASTROL
COLPAL
DIXON
FINEPIPE
GMRINFRA
GODREJCP
HOMEFIRST
IEX
INDUSIND BANK

ITC
IXIGO
LAURUSLABS
LTFOOD
MAXIND
MGL
NTPC
OFSS
PATAJALI
PETRONET
UBL.

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

Nifty (24436): Sell between 24550-24600 zone. Stop at 25927. Targets 24350/24150. Aggressive targets at 23500-23750 zone.

Bank Nifty (51239): Sell between 51500-51700 zone. Stop at 52651. Targets 51000/50500. Aggressive targets at 50000-50100 zone

 

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