# The Good News: Nifty is likely to roar towards new records highs.

*Morning Action @ 7 AM – Friday, September 20th 2024*

# Overnight, the Dow Jones and the S&P 500 hit new record highs.

# As of writing, Gift Nifty too is jumping out of the gate indicating the benchmark Nifty shall scale new record highs after a higher open.

# It looks like that Nifty is unlikely to look back as investors shall continue to cheer the Federal Reserve’s jumbo-sized rate cut.

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+38, 25525)
# Dow Futures: (-9, 42438)
# Nasdaq 100 Futures (-48, 20039)

# Nikkei (+711, 37865)
# Hang Seng (+33, 18069)

# Dow Jones (+522, 42025)
# Nasdaq (+441, 18014)
# Bovespa (-625, 133123).

MARKET TRENDS:
# Global: Positive
# FII: Negative (-2547.53 Cr)
# DII: Positive (+2012.86 Cr)
# Sentiment: Bullish
# Market Breadth: Positive
# Technicals: Higher high/low
# F&O: 25000 – 26000 zone.

# INDIA VIX 12.47 (-6.73%)
# Nifty PCR (26th Sept) 1.18
# Bank Nifty PCR (25th Sept) 0.92

# Nifty Outlook: Uncharted territory shall continue to be the new normal.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 25416)
SUPPORT: 25317/25110
RESISTANCE: 25701/26100
RANGE: 25350-25750
BIAS: Positive
21 DMA: 25147
50 DMA: 24777
200 DMA: 22889

Bank Nifty Technically:
BANK NIFTY (CMP 53038):
SUPPORT: 52750/52250
RESISTANCE: 53359/54500
RANGE: 52700-53700
BIAS: Positive
21 DMA: 51515
50 DMA: 51327
200 DMA: 48823

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

# Wall Street flares up in Thursday’s trade as Dow Jones gains 522 points in Fed-Fuelled session. Dow closes above the psychologically significant 42,000 level for the first time ever.

# At Thursday’s closing bell, the Dow Jones Industrial Average was up 1.3% at 42,025 and the S&P 500 had gained 1.7% to 5,713 – new record closes.

# The Nasdaq Composite, meanwhile, rose 2.5% to 18,013, but remains about 3% off of its all-time closing high of 18,647.45 from mid-July.

# WTI Crude oil trades firm at the $70.91 per barrel.

# COMEX Gold trades firm at $2586 per ounce.

NEED TO KNOW:

# Nifty logged fresh record all-time-high@ 25612 but the positive takeaway was that Bank Nifty was outperforming.

# The Good News: Nifty is likely to roar towards new records highs.

Our call of the day suggests Dalal Street is likely to be in a jubilant mood as Nifty will aim to capitalize on jumbo 50 basis points Fed rate cut and most importantly, the benchmark will aim to end the day with a bang.

# The street believes that Fed’s action shall support soft-landing bets.

1) Projections by FOMC members point to a median of 100bps in total rate cuts for the year, translating to 25bps in each of the central bank’s meetings this year.

2) Importantly, policymakers also expect GDP growth to remain at the 2% level for the upcoming years.

3) Upside risks to inflation have diminished…

# Long story short: Uncharted territory shall continue to be the new normal.

Most importantly, the benchmark will aim to end the day with a bang.

# The Nifty options data suggests Nifty is likely to be in a trading range of 25000-26000 zone. Maximum Call OI is at 25400 followed by 25500 strike prices. So, the 25500 mark is now Nifty’s major resistance zone on closing basis.

Maximum Put open interest stands at 25400 levels followed by 25000 levels.

Call writing was seen at 25400 and then at 25500 strike price, while there was meaningful Put writing at 25400 and then at 25300 strike prices.

# In yesterday’s trade, FIIs turned out to be net sellers to the tune of Rupees 2548 crores while DIIs bought shares to the tune of Rupees 2013 crores.

 

# Buzzing stocks:

1) State-run NTPC’s green energy arm files for $1.2 bln India IPO
The company, a unit of state-owned power producer NTPC , will only issue new shares, and existing shareholders will not sell any stake, the draft papers showed.

2) Bajaj Housing Finance shares dropped further 7.5% in yesterday’s trade amidst profit booking after its bumper debut in Monday’s trade which saw its price hit a peak of Rs 188.50.

3) Vodafone Idea shares tumbled 19%, Indus Towers also plunged 8% as Supreme Court rejected telecommunication companies’ plea for the re-computation of adjusted gross revenue (AGR) dues.

# Bottom-Line: Nifty shall stick to strong gains.

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

Nifty (25416): Buy at CMP. Stop at 24951. Zone. Targets 25550/25751. Aggressive targets at 26100-26500 zone.

Bank Nifty (53038): Buy at CMP. Stop at 51751. Targets 53359/53750. Aggressive targets at 54500-55000 zone.

# Our chart of the day is bullish on TITAN, OBEROI REALITY and NAUKRI on any intraday weakness with an interweek perspective.

# The 1 Stock to Buy Right Now:

Buy TITAN (CMP 3781): Buy at CMP. Stop at 3731. Targets at 3811/3877. Aggressive targets at 3951. (Interweek Strategy). Rationale: Signaling a massive upside consolidation breakout. Higher high/low.

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*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.