Nifty Outlook: Choppy waters. Nifty will struggle for direction. Caution advised.

*Morning Action @ 7 AM – Thursday, August 29th 2024* # Gift Nifty drags down in early action indicating Nifty may drift lower in today’s trade. Slight profit booking quite likely. Caution advised on the buy side. Blame it on weak overnight Wall Street cues and also this morning in extended trading, Nvidia shares have tumbled more than 7% even after the AI chipmaker topped revenue and earnings expectations. The firm’s sales outlook for the current quarter failed to excite investors. *7:00 AM GLOBAL UPDATE:* # GIFT Nifty 🇮🇳: (-45, 25014) # Dow Futures: (+25, 41116) # Nasdaq 100 Futures (-202, 19149) # Nikkei (-76, 38213) # Hang Seng (-99, 17594) # Dow Jones (-159, 41091) # Nasdaq (-199, 17556) # Bovespa (+558, 137344). *MARKET TRENDS:* # Global: Negative # FII: Negative (-1347.53 Cr) # DII: Positive (+439.35 Cr) # Sentiment: Risky # Market Breadth: Neutral # Technicals: Overbought zone # F&O: 24000 – 25500 zone. # INDIA VIX 13.95 (+2.35%) # Nifty PCR (29th Aug) 1.13 # Bank Nifty PCR (25th Sept) 0.98 # Nifty Outlook: Choppy waters. Nifty will struggle for direction. Caution advised. *WHAT EXACTLY HAPPENED AT WALL STREET IN OVERNIGHT TRADE:* # Wall Street ended broadly lower on light volume Wednesday as traders and investors awaited a critical quarterly earnings report from generative AI leader Nvidia. # WTI Oil futures seen drifting lower below $75 per barrel. # COMEX Gold consolidates near $2513 per ounce. Please note, Gold prices are up more than 22% for the year to date. *NEED TO KNOW:* Our call of the day suggests choppy waters ahead. Nifty will struggle for direction. Caution advised. # Blame it on US tech stocks which were sliding in particular in overnight trade ahead of the semiconductor company Nvidia’s latest financial results. # This morning in extended trading, Nvidia shares have tumbled more than 7% even after the AI chipmaker topped revenue and earnings expectations. The firm’s sales outlook for the current quarter failed to excite investors. # Caution will also be the buzzword amidst 3-big questions: 1) Is the Fed rate cut a done deal? 2) The street will also be eager to know how big the first cut might be? 3) Will the Fed cut again in November? Or will they pause after September rate cut? # Meanwhile, Crude oil futures have fallen below $75 per barrel. # All eyes will be on Reliance Industries (RIL) which is seen trading flat ahead of the company’s 47the Annual General Meeting (AGM) scheduled for Thursday, August 29, 2024, at 2 PM IST. # In yesterday’s trade, FIIs turned out to be net sellers to the tune of Rupees 1348 crores while DIIs bought to the tune of Rupees 440 crores. # The Nifty options data suggests Nifty is likely to be in a trading range of 24700-25500 zone. Maximum Call OI is at 25500 followed by 26000 strike prices. So, the 25500 mark is now Nifty’s major resistance zone on closing basis. Maximum Put open interest stands at 25000 levels followed by 24800 levels. Call writing was seen at 25400 and then at 25100 strike price, while there was meaningful Put writing at 24700 and then at 24900 strike prices. # Now, here is the preferred trade on Nifty and Bank Nifty: Nifty (25052): Buy on dips between 24850-24900 zone. Stop at 24609. Zone. Targets 25151/25350. Aggressive targets at 25550-25750 zone. Bank Nifty (51143): Buy between 50300-50500 zone. Stop at 49701. Targets 51357/51750. Aggressive targets at 52100-52500 zone. # Our chart of the day is bullish on BHARTI AIRTEL, SUN PHARMA, and IEX on any early weakness with an interweek perspective. # The 1 stock to sell right now: Sell DLF (CMP 837): Sell at CMP. Stop at 863. Targets 809/795. Aggressive targets at 777. (Interweek Strategy). Rationale: Signaling a massive breakdown. Momentum oscillators weakening. 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.