*Morning Action @ 7 AM – Thursday, October 10th 2024*
# Gift Nifty is seen taking over the positive baton from overnight strong close at Wall Street where the Dow Jones and the S&P 500 hit new record closing highs.
This morning, Asia too is tracking Wall Street higher.
Investors now gear up for September’s US consumer inflation report to trickle in today at 6 PM IST.
*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+117, 25202)
# Dow Futures: (-3, 42509)
# Nasdaq 100 Futures (+5, 20274)
# Nikkei (+217, 39495)
# Hang Seng (+409, 21046)
# Dow Jones (+432, 42512)
# Nasdaq (+109, 18292)
# Bovespa (-1550, 129962).
MARKET TRENDS:
# Global: Positive
# FII: Negative (-4562.70 Cr)
# DII: Positive (+3508.60 Cr)
# Sentiment: Bullish
# Market Breadth: Positive
# Technicals: Oversold conditions
# F&O: 24000 – 26000 zone.
# INDIA VIX 14.12 (-3.22%)
# Nifty PCR (31st Oct) 1.01
# Bank Nifty PCR (30th Oct) 0.85
# Nifty Outlook: Bulls are likely to make solid comeback.
# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:
Nifty Technically:
Nifty (CMP: 24982)
SUPPORT: 24694/24413
RESISTANCE: 25301/25701
RANGE: 24900-25300
BIAS: Positive
21 DMA: 25478
50 DMA: 25048
200 DMA: 23188
Bank Nifty Technically:
BANK NIFTY (CMP 51007):
SUPPORT: 50194/49654
RESISTANCE: 51851/52900
RANGE: 50700-52000
BIAS: Positive
21 DMA: 52477
50 DMA: 51536
200 DMA: 49191
*WHAT EXACTLY HAPPENED AT WALL STREET IN OVERNIGHT TRADE:*
# Wall Street ends Wednesday’s session with impressive gains as traders reacted to the Fed’s September meeting minutes which revealed a “substantial majority” of officials supported a significant 50-basis-point rate cut, but left the outlook for future cuts uncertain.
# Ahead of crucial CPI data release, the street ramped up bets that the Federal Reserve would embrace a more gradual approach to lowering borrowing costs.
# At the closing bell, S&P 500 added 0.7% to 5,792, an all-time closing high. The blue-chip Dow Jones also notched another record close, rising more than 1% to 42,512. The tech-heavy Nasdaq Composite gained 0.6% to 18,291.
# COMEX Gold drifts towards $2610 per ounce.
# WTI OIL prices drift lower towards $73.60 a barrel.
NEED TO KNOW:
# Ratan Tata passes away at 86. India left in grief.
Ratan Tata had led the Tata Group conglomerate for over two decades and served as the chairman of Tata Sons from 1991 to 2012.
🙏🙏R.I.P – OM SHANTI 🙏🙏
# Today, TCS officially sets afire the ceremonial starter’s pistol for corporate India’s Q2 earning season.
TCS is expected to register a single digit rise in its topline and bottomline compared to the September quarter of FY24.
# Meanwhile, another Tata Group IT firm – Tata Elxsi will also announce its July – September quarter earnings.
# On the international front, the focus will be on:
1) The US CPI (retail inflation) on Thursday, October 10th
2) The US PPI (wholesale inflation) on Friday, October 11th
# Nifty (CMP: 24982)
SUPPORT: 24694/24413
RESISTANCE: 25701
TRADING RANGE (24900-25300)
# The Negative catalyst surrounding Dalal Street: In yesterday’s trade, FIIs turned out to be net sellers to the tune of Rupees 4563 crores. Digging deeper, this October month, FIIs have pulled out over Rs 49,300 crore from Indian equities.
# The Positive catalyst: RBI changes stance to ‘neutral’ indicating rate cuts likely in December.
# Our call of the day suggests that Nifty is likely to roar on expectations that the RBI will aim to take over the theme of slashing interest rates from the Federal Reserve.
# Helping sentiments are the strong global cues. The Dow and the S&P 500 are flirting with their record highs.
# Buzzing stocks:
1) Adani Enterprises launches QIP at floor price of Rs 3117.47 per share.
2) Divis Laboratories is in limelight (CMP: Rs. 5988) after Citi initiated coverage with a “buy” rating and a price target of Rs 6400 per share.
Divis Lab is a leading player in the pharmaceutical sector, specializing in the production of active pharmaceutical ingredients (APIs) and intermediates.
3) Torrent Power too is flirting with its new-all-time high at Rs 1,985 per share.
Torrent Power secured a letter of award from Maharashtra State Electricity Distribution (MSEDCL). It also inked a share subscription and shareholders’ agreement (SSSA) with Lakshmi Mills and Torrent Urja 17 Private Limited (TU17).
# Now, here is the preferred trade on Nifty and Bank Nifty:
Nifty (24982): Buy at CMP. Stop at 24573. Zone. Targets 25301/25501. Aggressive targets at 25900-26101 zone.
Bank Nifty (51007): Buy between 50400-50700 zone. Stop at 48901. Targets 51500/51801. Aggressive targets at 52500-52900 zone.
# Our chart of the day is bullish on EXIDE, LUPIN, HCL TECH, TORRENT PHARMA and POLYCAB with an interweek perspective.
# The 1 Stock to Buy Right Now:
Buy EXIDE (CMP 519): Buy at CMP. Stop at 497. Targets at 539/563. Aggressive targets at 621. (Interweek Strategy). Rationale: Signaling a massive upside consolidation breakout.
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