Morning Action @ 7 AM – Friday, August 9th 2024

# This Friday morning, the bulls are everywhere!

# This Friday morning, the bulls are everywhere!

# Overnight at Wall Street, the S&P 500 notched its best day since 2022 

# In early action, Gift Nifty is taking over the positive baton courtesy of bargain hunters and as value buying also seen boosting sentiments.

7:00 AM GLOBAL UPDATE:

# GIFT Nifty 🇮🇳: (+253, 24353)

# Dow Futures: (-33, 39413)

# Nasdaq 100 Futures (-21, 18391)

# Nikkei (+509, 35330)

# Hang Seng (+205, 17097)

# Dow Jones (+683, 39446)

# Nasdaq (+464, 16660)

# Bovespa (+1147, 128661).

*MARKET TRENDS:*
#  Global: Positive
#  FII: Negative (-2626.73 Cr)
#  DII: Positive (+577.30 Cr)
#  Sentiment: Bullish
#  Market Breadth: Positive
#  Technicals: Oversold zone
#  F&O: 23500 – 25000 zone.

#  INDIA VIX 16.60 (+2.66%)
#  Nifty PCR (29th Aug) 1.40
#  Bank Nifty PCR (28th Aug) 0.91

#  Nifty Outlook: Bullish day out

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

*Nifty Technically:*
Nifty (CMP: 24117)
SUPPORT: 24000/23891
RESISTANCE: 24389/24701

RANGE: 24000-24400
BIAS: Positive
21 DMA: 24531
50 DMA: 23935
200 DMA: 22098

*Bank Nifty Technically:*
BANK NIFTY (CMP 50157):
SUPPORT: 49717/48910
RESISTANCE: 51151/51967
RANGE: 49700-50700
BIAS: Positive
50 DMA: 51501
50 MA: 51184
200 DMA: 47713

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

# Wall Street jumps out of the gate in Thursday’s session and  most importantly, stayed solidly higher through the close.

# The positive catalyst: Labour-market data calmed recession fears.

# In economic news, data from the Department of Labor showed initial jobless claims fell by 17,000 last week to 233,000, more than economists were expecting.

 # At the close, the Dow Jones Industrial Average gained 1.8% to 39,446, the S&P 500 rose 2.3% to 5,319, and the Nasdaq Composite added 2.9% to 16,660. 

# WTI crude futures improve now at $76.16 a barrel.

# COMEX Gold trades with positive bias, now at $2,424.

*NEED TO KNOW:*

# In yesterday’s trade, Nifty ended on an extremely weak note.

# Blame it on hawkish RBI tone which sent stocks lower.

# The pessimism was ‘reawakening the bears’

# Everything went out the door as investors ran for the exits en-masse.

# But the best part is that our stock markets are not reacting to any terrible headwinds in any negative manner for more than one day.

# That brings us to the big question: Is now again the time to buy stocks?

# The Good News this Friday morning: The talks of recession in the US, the talks of hard landing, political instability in the U.S, rising tensions in the Middle East, the ‘Yen Carry Trade’ are all off the front pages this Friday morning.

# Honestly speaking, the Nifty Bulls are actually obsessed with a double-rate cut (50- basis point cut) this September rate cut in the US.

# The biggest positive catalyst: There is a bright chance that the Federal Reserve succeeds in bringing inflation to heel without crashing the economy.

# The sentiments are also buoyed by:

1. Wall Street building on gains.
2. A better-than-expected reading for weekly US jobless claims.
3. Most importantly, the US VIX tumbled 10.5% lower in overnight session towards $25. (Please note, US VIX had spiked to a four-year high of $60 earlier this week). 

# Q1 results to trickle in today: Friday, August 9th: AARTI INDUSTRIES, ALKEM, BALKRISHNA INDUSTRIES, BERGER PAINT, GRASIM, JUBILANT FOODS, SUN TV.

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

Nifty (24117): Buy at CMP. Stop at 22701. Targets 24357/24550. Aggressive targets at 24650-24700 zone.

Bank Nifty (50157): Buy at CMP. Stop at 49631. Targets 50500/51151. Aggressive targets at 51500-51967 zone.

# Our chart of the day is bullish on TATA MOTORS, BHARAT FORGE and TVS MOTORS on any early weakness with an interweek perspective.

# The 1 stock to buy right now:

BUY IEX (CMP 194): Buy at CMP. Stop at  176. Targets  207/213. Aggressive targets at  219. (Interweek Strategy). Rationale: Signaling a massive upside consolidation breakout. Momentum oscillators bullish.

# Q1 results to trickle in today: Friday, August 9th: AARTI IND, ALKEM, BALKRISH IND, BERGER PAINT, GRASIM, JUBLFOODS, SUNTV

*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.