Investors hope that upcoming Friday’s US jobs report shall consolidate bets that the Fed will achieve a soft landing.

*Morning Action @ 7 AM – Tuesday, September 3rd 2024*

# This Tuesday morning, Gift Nifty is seen slipping as market participants track sluggish US stock futures.

# Investors hope that upcoming Friday’s US jobs report shall consolidate bets that the Fed will achieve a soft landing.

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (-25, 25340)
# Dow Futures: (-80, 41483)
# Nasdaq 100 Futures (-30, 19544)

# Nikkei (+250, 38898)
# Hang Seng (-26, 17665)

# Dow Jones (Closed, 41563)
# Nasdaq Closed, 17714)
# Bovespa (-1098, 134906).

MARKET TRENDS:
# Global: Positive
# FII: Positive (+1735.46 Cr)
# DII: Negative (+356.37 Cr)
# Sentiment: Bullish
# Market Breadth: Positive
# Technicals: Overbought zone
# F&O: 24000 – 25500 zone.

# INDIA VIX 14.06 (+5%)
# Nifty PCR (26th Sept) 1.50
# Bank Nifty PCR (25th Sept) 1.01

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

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 25279)
SUPPORT: 25137/24963
RESISTANCE: 25551/26000
RANGE: 25200-25400
BIAS: Positive
21 DMA: 24626
50 DMA: 24475
200 DMA: 22537

Bank Nifty Technically:
BANK NIFTY (CMP 51440):
SUPPORT: 50713/50100
RESISTANCE: 52000/52350
RANGE: 51000-52000
BIAS: Positive
21 DMA: 50662
50 DMA: 51531
200 DMA: 48316

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

# Overnight, both the US equities and bond markets were closed for Labor Day.

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

# WTI Oil futures consolidate near $74 per barrel.

# COMEX Gold consolidates near $2495 per ounce. Please note, Gold prices are up more than 21% for the year to date.

NEED TO KNOW:

# Nifty and Sensex new historic all-time-highs are now placed at 25333.65 and 82725.28 respectively.

# The big question: Are FIIs seen returning to their buying desk?

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

2) In yesterday’s trade, FIIs turned out to be net buyers to the tune of Rupees 1735 crores.

# Buying on dips shall continue to be the gyan mantra for benchmark Nifty as bullish investors see a decent chance for 50bps Fed cut in September and now brace for US NFP amid Fed rate cut speculation.

# Investors will now brace for August US jobs report which will be released on Friday, September 6.

# The Nifty options data suggests Nifty is likely to be in a trading range of 24700-26000 zone. Maximum Call OI is at 26000 followed by 25300 strike prices. So, the 25500 mark is now Nifty’s major resistance zone on closing basis.

Maximum Put open interest stands at 25000 levels followed by 24000 levels.

Call writing was seen at 25300 and then at 25500 strike price, while there was meaningful Put writing at 24500 and then at 24300 strike prices.

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

Nifty (25279): Buy at CMP. Stop at 24789. Zone. Targets 25350/25551. Aggressive targets at 25750-26000 zone.

Bank Nifty (51440): Buy at CMP. Stop at 50651. Targets 51750/52000. Aggressive targets at 52500-53000 zone.

# The 1 stock to buy right now:

Buy BRITANNIA (CMP 5922): Buy at CMP. Stop at 5803. Targets 6005/6061. Aggressive targets at 6179. (Interweek Strategy). Rationale: Momentum oscillators turning bullish. Signaling a massive upside breakout.

 

Investor Premium Services

Investor Premium Services

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.