The race for US President is virtually a dead heat…

*Morning Action @ 7 AM – Wednesday, November 6th 2024*

# In early action, Gift Nifty seen above the dotted lines indicating Nifty could start on a positive note and most importantly, there is a bright chance that the benchmark could trend higher through the regular trading session as the street awaits the next US president.

But that said expect volatility to be the hallmark as much depend on who the next US president is, how long it takes to decide the outcome.

# Polls show that the race for president is virtually a dead heat, but various predictions markets are suggesting that former President Donald Trump has an edge over Vice President Kamala Harris.

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+19, 24288)
# Dow Futures: (+310, 42532)
# Nasdaq 100 Futures (+57, 20284)

# Nikkei (+509, 38984)
# Hang Seng (-215, 20791)

# Dow Jones (+427, 42222)
# Nasdaq (+259, 18439)
# Bovespa (+146, 130661).

MARKET TRENDS:
# Global: Positive
# FII: Negative (-2569.41 Cr)
# DII: Positive (+3030.96 Cr)
# Sentiment: Risky
# Market Breadth: Neutral
# Technicals: Consolidation
# F&O: 23000 – 25000 zone.

# INDIA VIX 16.12 (-3.42%)
# Nifty PCR (28th Nov) 1.26
# Bank Nifty PCR (27th Nov) 1.07

# Nifty Outlook: Volatility is likely to be the hallmark.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 24213)
SUPPORT: 24000/23457
RESISTANCE: 24513/24911
RANGE: 24000-24500
BIAS: Neutral
21 DMA: 24612
50 DMA: 25061
200 DMA: 23468

Bank Nifty Technically:
BANK NIFTY (CMP 52207):
SUPPORT: 50865/50193
RESISTANCE: 52851/54467
RANGE: 51500-53500
BIAS: Neutral/Positive
21 DMA: 51542
50 DMA: 51900
200 DMA: 49547

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

# Overnight, Wall Street rose amidst a broad-based election day rally as all the 11 sectors closed in the green on Tuesday, and all three major indexes added more than 1%.
# The Nasdaq Composite surged 1.4% to close at 18,439 and is now within 1.5% of its October 29 all-time high. The S&P 500 was up 1.2% to 5,782, and the Dow Jones added 1% to 42,221.

# The latest polls indicate a tight race between former President Donald Trump and Vice President Kamala Harris.

# Commanding attention will also be the Federal Open Market Committee (FOMC) decision to be wired on Thursday.

# According to CME Group’s FedWatch Tool, following a softer-than-expected October jobs report, futures traders are pricing in a 97% probability the Federal Reserve will cut its benchmark interest rate by 25 basis points (bps) during its meeting this Thursday, November 7th

# COMEX Gold consolidates near $2735 per ounce.

# WTI crude oil futures improve near $71.73 per barrel.

 

NEED TO KNOW:

# Before we start, first things first…

# Today, Swiggy’s much-anticipated initial public offering (IPO) is slated to open for public subscription. The company plans to raise more than ₹11,000 crore from the public issue which will remain open till November 8.

# Now, to the biggest event of the day…

# Dalal Street braces for outcome of tight U.S. election race.

# Investors brace for long-awaited US election results for the top President seat in Washington.

# The big question: Can Nifty and the stock markets across the globe surprise on the upside?

# Technically speaking, confirmation of strength only on any close above Nifty 24513.

# Meanwhile, aggressive Nifty traders are also likely to be on the sidelines ahead of the Federal Reserve meeting, which will conclude with a policy statement on Thursday, November 7th at 2 pm Eastern Time.

The street is betting on a quarter-point cut, but some traders also think that the central bank could stand pat.

# The Q2 earnings season is reaching its fag-end and key corporates to announce their results this Wednesday, November 06th:

APOLLO HOSPITAL
CHAMBAL FERTILISER
DELTA CORP
DHANUKA
GRANULES
GUJ GAS
JINDAL STEEL
JK LAKSHMI
POWER GRID
RITES
TATA STEEL

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

Nifty (24213): Buy at CMP. Stop at 23701. Targets 24513/24771. Aggressive targets at 24911-25300 zone.

Bank Nifty (52207): Buy at CMP. Stop at 50513. Targets 52851/53300. Aggressive targets at 54467-55000 zone.

# Our chart of the day is bullish on CANARA BANK, BANK OF BARODA and NATIONAL ALUMINUM on any intraday weakness with an interweek perspective.

# The 1 Stock to Buy Right Now: Buy BANK OF BARODA (CMP 258): Buy at CMP. Stop at 237. Targets 265/275. Aggressive targets at 281. (Interweek Strategy). Rationale: Rebounding from oversold conditions on the daily charts. Momentum oscillators turning bullish. Key intraday support 248.

 

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