Morning Action @ 7 AM – Wednesday, August 14th  2024

• # Before we start, here is a gentle reminder that this Thursday, August 15th our stock markets will remain closed on account of Independence Day celebration.
• # Gifty Nifty takes over the positive baton from a strong finish at Wall Street in overnight trade.
• # Technically, confirmation of strength only above Nifty 24359 mark.

*7:00 AM GLOBAL UPDATE:*

• # GIFT Nifty 🇮🇳: (+80, 24237)
• # Dow Futures: (-32, 39734)
• # Nasdaq 100 Futures (+1, 19007)
• # Nikkei (+100, 36333)
• # Hang Seng (+60, 17234)
• # Dow Jones (+409, 39766)
• # Nasdaq (+407, 17188)
• # Bovespa (+1282, 132398).

*MARKET TRENDS:*

• #  Global: Positive
• #  FII: Negative (-2107.17 Cr)
• #  DII: Positive (+1239.96 Cr)
• #  Sentiment: Risky
• #  Market Breadth: Negative
• #  Technicals: Weakening Momentum
• #  F&O: 23500 – 25000 zone.
• #  INDIA VIX 16.16 (+1.83%)
• #  Nifty PCR (29th Aug) 1.36
• #  Bank Nifty PCR (28th Aug) 0.83
• #  Nifty Outlook: Upside is likely to be capped. Downside risk remains.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

*Nifty Technically:*

• Nifty (CMP: 24139)
• SUPPORT: 23891/23630
• RESISTANCE: 24359/24630
• RANGE: 24000-24300
• BIAS: Neutral
• 21 DMA: 24517
• 50 DMA: 24037
• 200 DMA: 22169

*Bank Nifty Technically:*

• BANK NIFTY (CMP 49832):
• SUPPORT: 49500/48910
• RESISTANCE: 50830/51151
• RANGE: 49300-50300
• BIAS: Neutral
• 50 DMA: 51278
• 200 DMA: 47815

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

• # *A promising reading on wholesale inflation and the upcoming Wednesday’s consumer price report have investors anticipating a bigger a half-point interest rate cut in September rather than a quarter-point cut.*
• # The US Producer Price Index (PPI) increased 0.1% in July after rising 0.2% in June.
• # At Tuesday’s closing bell, the Dow Jones index rose more than 1%, or almost 409 points, to 39,765, while the broader S&P 500 gained 1.7% to 5,434. The Nasdaq Composite jumped 2.4% to end at 17,187. 

# Looking ahead, this week has the potential to be another volatile one for Nifty and its stocks.

1. The highly anticipated July US Consumer Price Index (CPI) report will be released Wednesday.

The inflation data is significant as Federal Reserve Chief Jerome Powell has said repeatedly that the Federal Open Market Committee (FOMC) will remain data dependent in deciding when to bring the short-term federal funds rate down from a 23-year high.

• The July US Retail Sales report is scheduled for release on August 15, 2024.

# WTI crude futures  jump towards $78.81 a barrel.

# COMEX Gold trades with positive bias, now at $2,466.

*NEED TO KNOW:*

• # In yesterday’s trade, the sentiments turned negative after Nifty dived in amidst a mild washout at Dalal Street that sent stocks, big to small…lower.
• # The big question: Can Nifty notch a major win in Wednesday’s session?
  
  # The day’s trading theme revolves around US PPI inflation data which has softened.
• # Nifty is likely to start the day higher and most likely the rally is to pick up steam on backdrop of strong global cues.
• # Focus on shifts towards the highly anticipated July US CPI report will trickle in on Wednesday, August 14th at 6 PM IST.
• # Hopefully, bulls regroup as the street starts to speculate for a 50-basis points US interest-rate cut in September.
• # Technically, confirmation of strength only above Nifty 24359 mark.
• # Q1 Results to trickle in today: Wednesday, August 14th:
• BODAL CHEM
• COFFEE DAY
• EID PARRY
• GLENMARK
• HAL
• RPOWER.

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

• Nifty (24139): Buy between 23900-24000 zone. Stop at 22601. Targets 24300/24630. Aggressive targets at 24850-25100 zone.
• Bank Nifty (49832): Buy between 49300-49500 zone. Stop at 48731. Targets 50350/50750. Aggressive targets at 51500-51967 zone.
• # Our chart of the day is bullish on BAJAJ AUTO, and TVS MOTORS on any early weakness with an interweek perspective.

# The 1 stock to buy right now:

BUY TVS MOTORS (CMP 2636): Buy between 2590-2600 zone. Stop at  2529. Targets at  2681/2725. Aggressive targets at  2801. (Intermonth Strategy).  Rationale: Signalling 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.