Nifty is likely to trade in the green on investors’ hope that the Federal Reserve will be successful in piloting the economy to a soft landing.

*Morning Action @ 7 AM – Thursday, September 5th 2024*

# Gift Nifty is pointing to a higher start indicating Nifty is on track for a solid rebound as bulls shrug-off downbeat readings on the US manufacturing activity that’s spooking bullish sentiments at Wall Street.

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+96, 25362)
# Dow Futures: (-9, 40966)
# Nasdaq 100 Futures (+17, 18937)

# Nikkei (-233, 36807)
# Hang Seng (+13, 17470)

# Dow Jones (+38, 40975)
# Nasdaq (-52, 17084)
# Bovespa (+1757, 136111).

MARKET TRENDS:
# Global: Positive
# FII: Positive (+975.46 Cr)
# DII: Positive (+97.35 Cr)
# Sentiment: Positive
# Market Breadth: Positive
# Technicals: Overbought zone
# F&O: 24000 – 25500 zone.

# INDIA VIX 14.37 (+3.83%)
# Nifty PCR (26th Sept) 1.62
# Bank Nifty PCR (25th Sept) 1.04

# Nifty Outlook: Rebound play.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 25199)
SUPPORT: 25071/24963
RESISTANCE: 25335/26000
RANGE: 25100-25350
BIAS: Positive
21 DMA: 24707
50 DMA: 24543
200 DMA: 22594

Bank Nifty Technically:
BANK NIFTY (CMP 51400):
SUPPORT: 50713/50100
RESISTANCE: 52000/52350
RANGE: 51200-52000
BIAS: Positive
21 DMA: 50740
50 DMA: 51525
200 DMA: 48392

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

# In Wednesday’s trade, the S&P 500 and Nasdaq Composite fell 0.16% and 0.3%, respectively, declining for the second straight session. Meanwhile, the Dow eked out 0.09% gains.

# The trading theme primarily revolved around renewed recession fears triggered on backdrop of weak manufacturing data which was rattling the market sentiments.

# Investors are anxiously awaiting Friday’s US August jobs report for more insight into how the labor market is really holding up. A lukewarm report could send recession fears spiking and stocks spiralling.

On the flip side, a resilient report would be welcome for stock markets across the globe. The perma-bulls are hoping for a soft landing for the US economy to keep rolling.

# WTI Oil futures continue to trade below the $70 per barrel.

# COMEX Gold consolidates near $2497 per ounce. Please note, Gold prices are up more than 21% for the year to date.

 

NEED TO KNOW:

# In yesterday’s trade, Nifty was unsure of where to go next ahead of Friday’s job’s report.

# But this Thursday morning, there are two good news:

1) WTI oil prices have tumbled below $70 a barrel, the lowest in eight months as muted demand magnified the impact of relatively ample supply.

2) In yesterday’s negative session, the FIIs bought again to the tune of Rs. 975.46 crores.

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

# Until Friday’s US NFP is wired, the benchmark Nifty is likely to trade in the green on investors’ hope that the Federal Reserve will be successful in piloting the economy to a soft landing.

# That brings us to our call of the day which suggests for markets to bounce, Nifty and Sensex need to move above their new historic all-time-highs which are placed at 25333.65 and 82725.28 respectively.

# Technically, confirmation of strength only above Nifty 25334 mark.

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

Nifty (25199): Buy at CMP. Stop at 24789. Zone. Targets 25350/25551. Aggressive targets at 25900-26100 zone.

Bank Nifty (51400): Buy at CMP. Stop at 50651. Targets 51750/52000. Aggressive targets at 52500-53000 zone.

# Our chart of the day is bullish on BIOCON, HPCL and GRASIM on any intraday weakness with an interweek perspective.

# The 1 Stock to Buy Right Now:

Buy BIOCON (CMP 379): Buy at CMP. Stop at 359. Targets 395/413. Aggressive targets at 421. (Interweek Strategy). Rationale: Signaling a massive upside consolidation breakout. Momentum oscillators bullish.

 

 

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*RISK DISCLOSURES ON DERIVATIVES:*

# 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.

# On an average, loss makers registered net trading loss close to 50,000.

# Over and above the net trading losses incurred, loss makers expended an additional 28%of net trading losses as transaction costs.

# Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

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