# Nifty bulls could still be at work on reports that India’s CPI inflation has dropped to a 5-year low.
Morning Action @ 7 AM – Tuesday, August 13th 2024
# This Tuesday morning, Gift Nifty is flirting with the dotted lines indicating a quieter relative trading session with volatility calming relative to yesterday’s tumultuous wild swing trading…
# Nifty bulls could still be at work on reports that the India’s CPI inflation which has dropped to a 5-year low.
*7:00 AM GLOBAL UPDATE:*
- # GIFT Nifty 🇮🇳: (-3, 24341)
- # Dow Futures: (+13, 39370)
- # Nasdaq 100 Futures (-11, 18531)
- # Nikkei (+784, 35809)
- # Hang Seng (+13, 17103)
- # Dow Jones (-141, 39357)
- # Nasdaq (+35, 16781)
- # Bovespa (+501, 131116).
*MARKET TRENDS:*
- # Global: Positive
- # FII: Negative (-4680.31 Cr)
- # DII: Positive (+4477.73 Cr)
- # Sentiment: Bullish
- # Market Breadth: Positive
- # Technicals: Oversold zone
- # F&O: 23500 – 25000 zone.
- # INDIA VIX 15.86 (+3.39%)
- # Nifty PCR (29th Aug) 1.42
- # Bank Nifty PCR (28th Aug) 0.89
- # Nifty Outlook: Bulls may regroup at lower levels.
# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:
*Nifty Technically:*
Nifty (CMP: 24347)
SUPPORT: 24221/23891
RESISTANCE: 24630/25100
- RANGE: 24250-24500
- BIAS: Positive
- 21 DMA: 24535
- 50 DMA: 24005
- 200 DMA: 22145
*Bank Nifty Technically:*
BANK NIFTY (CMP 50578):
SUPPORT: 49717/48910
RESISTANCE: 51151/51967
RANGE: 50300-51100
BIAS: Positive
50 DMA: 51339
50 MA: 51261
200 DMA: 47781
*WHAT EXACTLY HAPPENED AT WALL STREET IN OVERNIGHT TRADE:*
# Overnight at Wall Street, it was sleepy/listless kind of day where the Nasdaq and S&P 500 ended above water, though the Dow Industrials was not so resilient.
# At the close, the Dow Jones Industrial Average was down 0.4% at 39,357. The S&P 500 eked out a fractional gain to 5,344, while the Nasdaq Composite added 0.2% to 16,780 on strength in a number of semiconductor stocks.
# Nvidia was the best of the bunch, surging 4.1%. Since last Monday’s broad-market meltdown, NVDA stock is up 8.5% to regain $211 billion in market value. Advanced Micro Devices (+1.9%) and Micron Technology (+1.7%) also gained ground.
# Looking ahead, this week has the potential to be another volatile one for Nifty and its stocks.
- The July US Producer Price Index (PPI) will trickle in on Tuesday, August 13th
- The highly anticipated July US Consumer Price Index (CPI) report will be released Wednesday.
- The July US Retail Sales report is scheduled for release on August 15, 2024.
# WTI crude futures jump towards $79.65 a barrel.
# COMEX Gold trades with positive bias, now at $2,465.
*NEED TO KNOW:*
- # Our call of the day suggests a rally is on the cards but nifty bulls may not jump the gun ahead of the highly anticipated July US CPI report to trickle in on Wednesday, August 15th
- # Now, before we get into detail, first things first…
- # Amidst Hindenburg-Sebi led volatility, Nifty did struggle to maintain bullish momentum in yesterday’s trade. But the Good News was that the said volatility did not indicate that the sky is about to fall.
- # If Nifty’s recovery in yesterday’s session is any indication, then any intraday declines in today’s trade will be an opportunity to initiate long positions. That said, confirmation of strength only above Nifty 24630 mark.
- # The biggest good news this Tuesday morning is that India’s retail inflation cools to nearly 5-year low in July.
- It was the first time the inflation rate fell below the RBI’s target range of 4% in nearly five years.
- # Our call of the day suggests a rally is on the cards but nifty bulls may not jump the gun ahead of the highly anticipated July US CPI report to trickle in on Wednesday, August 15th
- # Technically, confirmation of strength only above Nifty 24630 mark.
# Q1 results to trickle in today:
- ALL CARGO
- AMRUTANJAN
- APOLLO HOSPITAL
- GMR INFRA
- GNFC
- GODREJ INDUSTRIES
- HERO CORP
- HINDALCO
- IRCTC
- MANAPPURAM
- MFSL
- MOTHERSON
- MUTHOOT FINANCE
- NBCC
- NYKAA
- PEL.
# Now, here is the preferred trade on Nifty and Bank Nifty:
- Nifty (24347): Buy at CMP. Stop at 22701. Targets 24500/24630. Aggressive targets at 24850-25100 zone.
- Bank Nifty (50578): Buy between 50100-50300 zone. Stop at 49631. Targets 50750/51151. Aggressive targets at 51500-51967 zone.
- Our chart of the day is bullish on BAJAJ AUTO, EXIDE INDUSTRIES, and TVS MOTORS on any early weakness with an interweek perspective.
# The 1 stock to buy right now:
- BUY TVS MOTORS (CMP 2578): Buy between 2550-2565 zone. Stop at 2409. Targets at 2613/2721. Aggressive targets at 2801. (Intermonth Strategy). Rationale: Signaling a massive upside consolidation breakout. Higher high/low.
*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.