The rally is likely to be a broad-based as bargain hunters will aim to swoop in…

*Morning Action @ 7 AM – Tuesday, September 10th 2024*

# Gift Nifty zooms higher indicating that the benchmark Nifty may jump out of the gate in Tuesday’s trade and that’s’ in line with our call of the day which suggests the rally is likely to be a broad-based as bargain hunters will aim to swoop in following last week’s big losses.

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+54, 25034)
# Dow Futures: (-10, 40872)
# Nasdaq 100 Futures (-26, 18667)

# Nikkei (-91, 36132)
# Hang Seng (+8, 17205)

# Dow Jones (+484, 40830)
# Nasdaq (+194, 18885)
# Bovespa (+165, 134737).

MARKET TRENDS:
# Global: Positive
# FII: Positive (+1176.55 Cr)
# DII: Positive (+1757.02 Cr)
# Sentiment: Bullish
# Market Breadth: Positive
# Technicals: Rebound Play
# F&O: 24000 – 25500 zone.

# INDIA VIX 14.23 (-6.5%)
# Nifty PCR (26th Sept) 1.46
# Bank Nifty PCR (25th Sept) 0.87

# Nifty Outlook: Rebound play on cards.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 24936)
SUPPORT: 24753/24641
RESISTANCE: 25334/26000
RANGE: 24900-25200
BIAS: Positive
21 DMA: 24827
50 DMA: 24609
200 DMA: 22673

Bank Nifty Technically:
BANK NIFTY (CMP 51118):
SUPPORT: 50369/49653
RESISTANCE: 51755/52357
RANGE: 50900-51900
BIAS: Positive
21 DMA: 50890
50 DMA: 51423
200 DMA: 48498

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

# Wall Street witnesses a sharp rebound in Monday’s trade as the street suspects that worries about growth and economic slowdown in the US are overblown, the economy is unlikely to fall off the cliff.

# According to data from CME FedWatch tool, THE Fed-funds futures traders are pricing in a 27% likelihood for a half-point rate cut and a 73% chance for a quarter-percentage-point cut,

# The Nasdaq Composite gained 1.2% today to finish at 16,884. The S&P 500 (+1.2% at 5,471) and Dow Jones Industrial Average (+1.2% at 40,829) notched even bigger advances following their worst weekly performances since March 2023.

# WTI Oil futures consolidates near the $68.90 per barrel.

# COMEX Gold improves at $2533 per ounce.

NEED TO KNOW:

# This Tuesday, Nifty will aim to look to claw back its recent losses.

# We suspect, Nifty will bounce back with conviction.

# Bullish Nifty traders are likely to go bargain hunting, thanks to…

1) An overnight rebound at Wall Street.
2) Both FIIs/DIIs were net buyers in Monday’s trade.
3) Sluggish oil prices.

# Nifty’s up move shall take off smoothly.

# Focus will be on the presidential debate between Democratic nominee Kamala Harris and Republican candidate and former President Donald Trump on Tuesday.

# Now, before the September 18th Fed meet, bullish traders will have to brace with two inflation reports.

# So, on the economic front, US inflation data will be high on the agenda this week with the consumer price index for August due Wednesday and producer price data out on Thursday.

# Meanwhile, Bajaj Housing Finance IPO has been fully subscribed on Day 1; Retail quota booked full, NIIs overbid.

# Ola Electric shares witnessed volatile movement, ends 4% higher in Monday’s trade at Rs 114 despite reports of the expiry of the anchor lock-in period has released 18.18 lakh shares for trading.

# IndiGo is in limelight on reports that it is set to expand its international network and bolster its cargo operations over the next few years as part of a broader goal to establish itself as a major global airline by 2030. CEO Pieter Elbers has revealed plans to double the airline’s international destinations to 40 by March 2025, with a focus on untapped markets for Indian travelers. (Source: Economic Times).

# Shares of Avenue Supermarts (DMart) are flirting with their two-year high of Rs 5,361 on hopes of improvement in discretionary demand and margins

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

Nifty (24936): Buy at CMP. Stop at 24559. Zone. Targets 25100/25334. Aggressive targets at 25750-26000 zone.

Bank Nifty (51118): Buy at CMP. Stop at 50101. Targets 51500/51755. Aggressive targets at 52357-53000 zone.

# Our chart of the day is bullish on BERGER PAINTS, GODREJ CP and BRITANNIA on any intraday weakness with an interweek perspective.

# The 1 Stock to Buy Right Now:

Buy BERGER PAINTS (CMP 602): Buy at CMP. Stop at 579. Targets at 625/639. Aggressive targets at 661. (Interweek Strategy). Rationale: Higher high/low. Momentum oscillators bullish.

 

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