Nifty seen running into a wall of worries…

*Morning Action @ 7 AM – Wednesday, October 16th 2024*

# Gift Nifty seen running into a wall of worries this Wednesday and also blame the caution on backdrop of foreign investors who turned net sellers in October, to the tune of Rs 63,900 crore so far.

# There was little in the way of economic data to move the needle and the trading theme shall revolve around weak overnight Wall Street cues.

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (-62, 25044)
# Dow Futures: (-5, 42735)
# Nasdaq 100 Futures (+18, 20177)

# Nikkei (-635, 39275)
# Hang Seng (-175, 20145)

# Dow Jones (-325, 42740)
# Nasdaq (-187, 18316)
# Bovespa (+38, 131043).

# Our call of the day suggests Nifty will struggle to gain traction on the buy side as long as Nifty 25301 mark is held as a resistance.

MARKET TRENDS:
# Global: Negative
# FII: Negative (-1748.71 Cr)
# DII: Positive (+1654.96 Cr)
# Sentiment: Risky
# Market Breadth: Neutral
# Technicals: Weakening Momentum
# F&O: 24000 – 26000 zone.

# INDIA VIX 13 (Unchanged)
# Nifty PCR (31st Oct) 0.98
# Bank Nifty PCR (30th Oct) 0.92

# Nifty Outlook: Upside is likely to be capped. Caution advised.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 25057)
SUPPORT: 24694/24413
RESISTANCE: 25301/25701
RANGE: 24800-25150
BIAS: Neutral
21 DMA: 25451
50 DMA: 25060
200 DMA: 23263

Bank Nifty Technically:
BANK NIFTY (CMP 51906):
SUPPORT: 50771/50194
RESISTANCE: 52351/52900
RANGE: 51300-52300
BIAS: Neutral
21 DMA: 52498
50 DMA: 51545
200 DMA: 49271

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

# In Tuesday’s trade, Wall Street’s key indices traded in red as traders were apprehensive amidst a weaker-than-expected reading for the NY Empire States Manufacturing Index.

Nvidia lost over 5%, Broadcom sank 3.5% and Advanced Micro Devices plunged 5.2% after Bloomberg reported the Biden administration discussed capping sales of advanced AI chips to some countries.

Also, energy stocks were under pressure, namely Exxon Mobil (-2.2%) and Chevron (-1.4%) amid a sharp retreat in oil prices.

# COMEX Gold inches higher towards $2665 per ounce.

# Overnight, WTI crude oil futures have tumbled to $70.5 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.

# Lack of follow-through buying blamed as Reliance shares fell 2% after soft Q2 results.

# We suspect, Nifty is unlikely to make any convincing moves in the north-direction.

# The biggest negative catalyst: Blame the caution on backdrop of foreign investors who turned net sellers in October, to the tune of Rs 63,900 crore in the month so far.

# Nifty will react to the biggest news:

1) Maharashtra Assembly will be held in a single phase on November 20.
2) 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.

# Hurting sentiments will be the growing signs of an economic downturn in the Chinese economy.

# Overnight, Wall Street was in red after Bloomberg reported the Biden administration discussed capping sales of advanced AI chips to some countries. (Nvidia lost over 5%, Broadcom sank 4% and Advanced Micro Devices plunged 5.3%)

# The biggest positive catalyst: Oil plunges to $70 a barrel after Israel says it won’t strike Iran’s Nuclear and Energy Sites.

# Our call of the day suggests Nifty will struggle to gain traction on the buy side as long as ‘Nifty 25301’ is held as a resistance.

Nifty Technically:
Nifty (CMP: 25057)
SUPPORT: 24694/24413
RESISTANCE: 25301/25701
RANGE: 24800-25150

# Q2 Corporate India results to trickle in: Wednesday, October 16th: BAJAJ AUTO, LTTS, MPHASIS.

# Buzzing stocks:

1) HDFC Life tumbled 2.58% despites its Q2 FY25 net profit jumped 15% year-on-year to Rs 433 crore, led by healthy premium collections and investment income.

2) Transformers & Rectifiers hit 5% upper circuit logging an all-time high of Rs 860.25 per share.

Transformers and Rectifiers (India) Ltd registered a significant year-on-year (Y-o-Y) rise in net profit of 2,731% to Rs 45.3 crore for the second quarter ending on September 30, 2024.

# Meanwhile, Hyundai Motor India’s Rs 27,870-crore initial public offering (IPO) saw a steady response on first day of subscription with 18% of the overall offer getting subscribed.

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

Nifty (25057): Sell between 25100-25150 zone. Stop at 25453. Targets 24900/24694. Aggressive targets at 24413-24500 zone.

Bank Nifty (51906): Buy on declines between 51300-51500 zone. Stop at 50601. Targets 52300/52851. Aggressive targets at 54000-54467 zone.

# Our chart of the day is bullish on DLF, OBEROI REALITY and BERGER PAINTS with an interweek perspective.

# The 1 Stock to Buy Right Now: Buy DLF (CMP 879): Buy between 863-867 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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