Nifty is seen struggling to keep its head above water despite a strong session witnessed by Wall Street in Wednesday’s session.

*Morning Action @ 7 AM – Thursday, October 17th 2024*

# In early action, Gift Nifty is seen struggling to keep its head above water despite a strong session witnessed by Wall Street in Wednesday’s session.

Dow Jones scaled new record high.

# Wall Street investors were still cautiously navigating the earnings season and gearing up for the presidential election.

 

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+21, 25013)
# Dow Futures: (-47, 43031)
# Nasdaq 100 Futures (-31, 20143)

# Nikkei (-7, 39173)
# Hang Seng (-175, 20145)

# Dow Jones (+337, 43078)
# Nasdaq (+51, 18367)
# Bovespa (+682, 131726).

MARKET TRENDS:
# Global: Neutral
# FII: Negative (-3435.94 Cr)
# DII: Positive (+2256.29 Cr)
# Sentiment: Risky
# Market Breadth: Neutral
# Technicals: Weakening Momentum
# F&O: 24000 – 26000 zone.

# INDIA VIX 13.05 (+0.38%)
# Nifty PCR (31st Oct) 0.99
# Bank Nifty PCR (30th Oct) 0.92

# Nifty Outlook: Nifty may struggle for direction. Caution advised.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 24971)
SUPPORT: 24694/24413
RESISTANCE: 25301/25701
RANGE: 24800-25150
BIAS: Neutral
21 DMA: 25432
50 DMA: 25079
200 DMA: 23280

Bank Nifty Technically:
BANK NIFTY (CMP 51801):
SUPPORT: 50771/50194
RESISTANCE: 52351/52900
RANGE: 51300-52300
BIAS: Neutral
21 DMA: 52481
50 DMA: 51579
200 DMA: 49288

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

# In Wednesday’s trade at Wall Street’s, key indices traded in green as strong quarterly earnings reports from bellwether names in the financial and transportation sectors helped offset continued weakness in chip stocks to send markets higher.

Results from Morgan Stanley and UBS helped lift financials.

# At the closing bell, the blue-chip Dow Jones Industrial Average was up 0.8% at 43,077 while the broader S&P 500 added 0.5% to 5,842%. The tech-heavy Nasdaq Composite rose 0.3% to 18,367.

# COMEX Gold inches higher towards $2677 per ounce.

# Overnight, WTI crude oil futures traded subdued near $70.75 per barrel driven by concerns over China’s weakening economy and most importantly, after Israel says it won’t strike Iran’s Nuclear and Energy Sites.

 

NEED TO KNOW:

# Nifty traded fragile in yesterday’s trade and most importantly, Nifty slipped and ended below the 25000 mark.
# Hopefully, in today’s trade, Nifty and its stocks will be aiming to put their last two-days pessimism behind it.
# We suspect, tumbling oil prices towards $70 a barrel could act as the biggest positive catalyst.

# Strictly speaking, risk-on sentiments are dented on backdrop of:

1) Persistent FIIs selling. (Foreign investors have been net sellers this October month, to the tune of Rs 67,300, previous high was in March 2020 which was at 65,816 Crore).
2) Uninspiring corporate India’s Q2FY25 earnings.
3) Uncertainty over the Middle East conflict.
4) China concerns.

# Q2 Corporate India results to trickle in: Thursday, October 17th:

AXISBANK
HAVELLS
INFY
IOB
POLYCAB
QUICKHEAL
TATACHEM
TATACOMM
WIPRO.

# Traders also brace for Maharashtra Assembly polls which will be held in a single phase on November 20. Jharkhand polls will be held in two phases on November 13 and 20th.

Counting of votes for the two states will take place on November 23.

# Buzzing stocks:

1) RailTel is on limelight on winning ₹79 crore order from MHADA. Investors have responded positively to RailTel’s consistent flow of orders this year, contributing to a 31% increase in the company’s share value year-to-date.

2) Stock prices of capital market-related sectors like asset management companies (AMCs) and broking firms were in limelight after HDFC AMC and Angel One posted a strong September quarter (Q2FY25) earnings.

# Meanwhile, Hyundai Motor India’s Rs 27,870-crore initial public offering (IPO) saw a steady response on second day of subscription with 42% of the overall offer getting subscribed, retail portion booked 38%.

Hyundai India shares will be listed on both NSE and BSE on October 22 while shares will be allotted to successful bidders on October 18.

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

Nifty (24971): Buy at CMP. Stop at 24603. Targets 25234/25500. Aggressive targets at 25701-26000 zone.

Bank Nifty (51806): Buy at CMP. Stop at 50601. Targets 52300/52851. Aggressive targets at 54000-54467 zone.

# Our chart of the day is bullish on DLF, CUMMINS and DR REDDYS LAB with an interweek perspective.

# The 1 Stock to Buy Right Now: Buy DLF (CMP 885): Buy between 865-870 zone. Stop at 843. Targets at 893/915. Aggressive targets at 951. (Interweek Strategy). Rationale: Signalling a massive breakout on the upside.

 

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