Gift Nifty wobbles indicating a sluggish start for the benchmark Nifty…

*Morning Action @ 7 AM – Monday, September 9th 2024*

# Gift Nifty wobbles indicating a sluggish start for the benchmark Nifty, tracking a sharp selloff on Wall Street as Friday’s weak US jobs data raised concerns about the health of the world’s largest economy.

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (-95, 24832)
# Dow Futures: (+40, 40386)
# Nasdaq 100 Futures (+59, 18481)

# Nikkei (-1012, 35384)

# Dow Jones (-410, 40345)
# Nasdaq (-509, 18421)
# Bovespa (-1930, 134572).

MARKET TRENDS:
# Global: Negative
# FII: Negative (-620.95 Cr)
# DII: Positive (+2121.53 Cr)
# Sentiment: Bearish
# Market Breadth: Negative
# Technicals: Overbought zone
# F&O: 24000 – 25500 zone.

# INDIA VIX 15.21 (+7.04%)
# Nifty PCR (26th Sept) 1.44
# Bank Nifty PCR (25th Sept) 0.82

# Nifty Outlook: Nifty could extend its slide.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 24852)
SUPPORT: 24641/24411
RESISTANCE: 25000/25335
RANGE: 24650-25000
BIAS: Neutral/negative
21 DMA: 24788
50 DMA: 24591
200 DMA: 22647

Bank Nifty Technically:
BANK NIFTY (CMP 50577):
SUPPORT: 49653/49033
RESISTANCE: 51381/51900
RANGE: 49900-51900
BIAS: Neutral/negative
21 DMA: 50844
50 DMA: 51457
200 DMA: 48460

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

# Wall Street fell hard in Friday’s trading session as it panned out to be an uncertain day for investors, with stocks trading in deep red.

There were worries about growth. The August jobs report ramped up worries about a cooling labor market.

# The August jobs report, according to the Bureau of Labour statistics added 142,000 new jobs last month, falling far short of the 165,000 jobs economists anticipated. Additionally, the June and July jobs reports were downwardly revised by a combined 86,000.

Additionally, the June and July jobs reports were downwardly revised by a combined 86,000.

# Earlier, the latest update on US manufacturing has brought fear about a recession back to the surface.

# WTI Oil futures tumble towards the $68 per barrel.

# COMEX Gold consolidates at $2497 per ounce.

 

NEED TO KNOW:

# The catalysts for our stock markets have taken sharp bearish turn…

# Actually, the trading theme has changed quickly from the optimism about cooling US inflation towards fears over a slowdown in the US economy…

# Friday’s weaker-than-expected US jobs data has again reignited recession fears.

# That’s on backdrop of the latest update on US manufacturing that has brought fear about a recession back to the surface.

# Expect Nifty to trade skittish as all eyes turn to August US jobs report.

# Before the Fed outcome on September 18th; bullish traders will have to brace with two inflation reports:

1) The Consumer Price Index (CPI – retail inflation) report on September 11th

2) And on September 12th traders will have to brace for the Producer Price Index (PPI – wholesale inflation) report.

# In Friday’s trade, FIIs turned out to be net sellers to the tune of Rupees 621 crores.

# India VIX, the fear index has shot higher towards 15.21 levels.

# Amidst this backdrop, expect Nifty to trade skittish for the day on backdrop of sluggish global cues.

# Meanwhile, Bajaj Finance and Bajaj Finserv are trading with positive bias as Bajaj Housing Finance sets mega-IPO date on 9 September and closes on September 11th.

# Meanwhile, Reliance Industries slipped 2.97% in last week’s trade despite approving bonus share issue in 1:1 ratio, the first bonus issue since 2017, when its stock price was roughly Rs 700.

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

Nifty (24852): Sell at CMP. Stop at 25189. Zone. Targets 24751/24641. Aggressive targets at 23900-24100 zone.

Bank Nifty (50577): Sell at CMP. Stop at 51751. Targets 50000/49653. Aggressive targets at 49033-49250 zone.

# Our chart of the day is bearish on DIXON TECHNOLOGY, ABB and BHARAT FORGE on any intraday strength with an interweek perspective.

# The 1 Stock to Sell Right Now:

Sell DIXON (CMP 12064): Sell at CMP. Stop at 12901. Targets 11500/10951. Aggressive targets at 10721. (Interweek Strategy). Rationale: Weakening momentum. Signaling a breakdown.

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