*Morning Action @ 7 AM – Wednesday, October 9th 2024*
# Gift Nifty is indicating a positive start and that’s in line with our call of the day which suggests that the risk appetite could come-back with a vengeance amidst a sharp drop in oil prices.
# All the attention now turns on the RBI MPC policy outcome (10 am), FOMC Minutes and the Fedspeak.
*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+45, 25166)
# Dow Futures: (-56, 42024)
# Nasdaq 100 Futures (-12, 20096)
# Nikkei (+331, 39268)
# Hang Seng (+363, 21290)
# Dow Jones (+126, 42080)
# Nasdaq (+259, 18183)
# Bovespa (-506, 131512).
MARKET TRENDS:
# Global: Positive
# FII: Negative (-5729.68 Cr)
# DII: Positive (+7000.60 Cr)
# Sentiment: Neutral
# Market Breadth: Neutral
# Technicals: Oversold conditions
# F&O: 24000 – 26000 zone.
# INDIA VIX 14.58 (-3.32%)
# Nifty PCR (31st Oct) 1.038
# Bank Nifty PCR (30th Oct) 0.86
# Nifty Outlook: Bulls may regroup at lower levels.
# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:
Nifty Technically:
Nifty (CMP: 25013)
SUPPORT: 24694/24413
RESISTANCE: 25301/25701
RANGE: 24850-25300
BIAS: Neutral/Positive
21 DMA: 25477
50 DMA: 25046
200 DMA: 23171
Bank Nifty Technically:
BANK NIFTY (CMP 51062):
SUPPORT: 50194/49654
RESISTANCE: 51851/52900
RANGE: 50600-52000
BIAS: Neutral/Positive
21 DMA: 52484
50 DMA: 51545
200 DMA: 49176
*WHAT EXACTLY HAPPENED AT WALL STREET IN OVERNIGHT TRADE:*
# Wall Street rebounds in Tuesday’s trade as tech stocks jump higher with notable performances seen from megacap tech names like Nvidia (4.1%), Apple (1.8%) and Meta Platforms (1.4%).
# The big breaking news however is a sharp drop in oil prices in overnight trade, down 4% at $74 a barrel after China’s National Development and Reform Commission did not announce any new supportive measures. The street fears, In the absence of policy intervention, an economic slowdown could dampen China’s oil demand in the short to medium term
# At the closing bell, the blue-chip Dow Jones added 0.3% to 42,080, while the broader S&P 500 rose 1% to 5,751. The tech-heavy Nasdaq Composite gained 1.5% to 18,182.
# COMEX Gold drifts towards $2623 per ounce.
NEED TO KNOW:
# The good news as we start today’s trading session is that Nifty Bulls have made a solid comeback and most importantly, Nifty is now again above the psychological 25000 mark.
# The big question: What’s next for benchmark Nifty?
# Our call of the day suggests that Nifty is likely to be in a state of flux as the near-term direction will depend much on the RBI Policy Outcome to be wired on Wednesday, at 10 AM:
# The big question: Will the RBI take over the theme of slashing interest rates from the Federal Reserve?
# We suspect, RBI is unlikely to cut the benchmark interest rate as retail inflation is still a cause of concern. On backdrop are the possibility of the Middle East crisis deteriorating further, impacting crude oil and commodity prices.
# Nifty is likely to trade volatile as the main events on the docket from here-on are:
1) RBI MPC policy outcome to be wired on Wednesday, 9th October 2024
2) The US FOMC Meeting Minutes to trickle on Wednesday, 9th October 2024.
3) The US CPI (retail inflation) on Thursday, October 10th
4) The US PPI (wholesale inflation) on Friday, October 11th
5) TCS officially sets afire the ceremonial starter’s pistol on Thursday, 10th October.
# Nifty (CMP: 25013)
SUPPORT: 24694/24413
RESISTANCE: 25701
# Volatility will continue to be the hallmark as on backdrop are FIIs having pulled out over Rs 44,000 crore from Indian equities in the last seven-trading sessions.
# Buzzing stocks:
1) LTIMindtree rebounds 1.89% higher after the firm launched its comprehensive digital transformation and ESG platform, called Smart Spaces 2.0.
2) PSP Projects gained up to 4.45% after the company announced that it has bagged an order worth Rs 270 crore from domestic entities.
3) SEBI has given the green light to NSDL’s highly anticipated IPO. This move paves the way for prominent investors, including the NSE, State Bank of India (SBI), and HDFC Bank, to divest their stakes in NSDL, as outlined in the Draft Red Herring Prospectus (DRHP).
# Now, here is the preferred trade on Nifty and Bank Nifty:
Nifty (25013): Buy at CMP. Stop at 24473. Zone. Targets 25301/25501. Aggressive targets at 25900-26101 zone.
Bank Nifty (51021): Buy between 50400-50700 zone. Stop at 48901. Targets 51500/51801. Aggressive targets at 52500-52900 zone.
# Our chart of the day is bullish on LUPIN, TORRENT PHARMA and SIEMENS with an interweek perspective.
# The 1 Stock to Buy Right Now:
Buy TORRENT PHARMA (CMP 3517): Buy at CMP. Stop at 3351. Targets at 3575/3671. Aggressive targets at 3750. (Interweek Strategy). Rationale: Signalling a massive breakout on the upside.
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