# The US Friday’s NFP shall steal the show as that will determine how big will the Fed rate cut be?

*Morning Action @ 7 AM – Monday, September 2nd 2024*

# This Monday morning, Gift Nifty is aiming to take over the positive baton from a strong close at Wall Street in Friday’s trade indicating bullish consolidation to be the preferred trade for benchmark Nifty.

# As a reminder, Monday is stock market holiday with both the US equities and bond markets closed for Labor Day.

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+41, 25433)
# Dow Futures: (-63, 41500)
# Nasdaq 100 Futures (-29, 19545)

# Nikkei (+250, 38898)
# Hang Seng (+9, 17795)

# Dow Jones (+228, 41563)
# Nasdaq (+197, 17714)
# Bovespa (-37, 136004).

MARKET TRENDS:
# Global: Positive
# FII: Positive (+5318.14 Cr)
# DII: Negative (-3198.07 Cr)
# Sentiment: Bullish
# Market Breadth: Positive
# Technicals: Overbought zone
# F&O: 24000 – 25500 zone.

# INDIA VIX 13.39 (-2.90%)
# Nifty PCR (26th Sept) 1.51
# Bank Nifty PCR (25th Sept) 0.99

# Nifty Outlook: Bullish consolidation shall be the preferred theme for benchmark Nifty.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 25236)
SUPPORT: 25137/24963
RESISTANCE: 25551/26000
RANGE: 25150-25400
BIAS: Positive
21 DMA: 24613
50 DMA: 24440
200 DMA: 22507

Bank Nifty Technically:
BANK NIFTY (CMP 51351):
SUPPORT: 50713/50100
RESISTANCE: 52000/52350
RANGE: 50700-51500
BIAS: Positive
21 DMA: 506667
50 DMA: 51538
200 DMA: 48278

*WHAT EXACTLY HAPPENED AT WALL STREET IN FRIDAY’S TRADE:*

# The biggest positive takeaway from Friday’s trade at Wall Street was that the Dow Jones index rallied hard to a new record closing high.

# The Positive Catalyst: The Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, increased 0.2% month-on-month and 2.5% year-on-year, matching street’s expectations.

# The Dow Jones index rose 228 points, or 0.6%, marking its fourth record close of the week. The S&P 500 rose 1%, while the Nasdaq Composite was up 1.1%. The S&P has also risen in four-straight months.

# The Dow rose 1.8% in August, while the S&P 500 rose 2.3% and the Nasdaq rose 0.6%. The biggest positive takeaway was that Nasdaq’s shocking turnaround, given the Nasdaq entered correction territory early in the month and the S&P 500 and Dow both had their worst day since 2022 on Aug.

# The PCE data bolsterers hopes for Fed rate cuts this September 18th

# WTI Oil futures tumble near $73 per barrel.

# COMEX Gold consolidates near $2503 per ounce. Please note, Gold prices are up more than 22% for the year to date.


NEED TO KNOW:

# This Monday Morning, the cake is already baked for solid gains for benchmark Nifty…

# The Positive catalyst: Wall Street jumping out of the gate as the Fed’s Preferred Inflation Gauge is on track for September Rate Cuts!

# Keeping optimism alive at Dalal Street will be the fact that the WTI crude futures declined by 3.1% in Friday’s trade to settle at $73.5 per barrel amidst possibility of rise in OPEC+ supply.

# The positive takeaway from last week’s trade was that FIIs net bought Rs 9,217 crore worth of shares.

# Investors will now brace for August US jobs report which will be released on Friday, September 6. This NFP will provide the next major test for the stock market.

# The US Friday’s NFP shall steal the show as that will determine how big will the Fed rate cut be?

# Meanwhile, the highly anticipated initial public offer (IPO) of Bajaj Housing Finance is all set to open between September 9th to 11th; to raise Rs 6,560 crore. (The price band will be issued on September 3 while the anchor portion will be on September 6th )

# Traders will react to the August sales numbers of Auto stocks which trickle in from September 1.

# Keeping optimism alive at Dalal Street will be the fact that the WTI crude futures declined by 3.1% to settle at $73.5 per barrel on Friday amidst possibility of rise in OPEC+ supply.

# Meanwhile, Reliance Industries has failed to gain traction after Bonus Share Issue, Growth Guidance. RIL had ended 0.74% lower in Friday’s trade.

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

Nifty (25252): Buy at CMP. Stop at 24789. Zone. Targets 25350/25551. Aggressive targets at 25750-26000 zone.

Bank Nifty (51351): Buy at CMP. Stop at 50451. Targets 51357/51750. Aggressive targets at 52100-52500 zone.

# Our chart of the day is bullish on DRREDDYS LAB, PERSISTENT SYYSTEMS, COFORGE and NTPC on any early weakness with an interweek perspective.

# The 1 stock to buy right now:

Buy NTPC (CMP 416): Buy at CMP. Stop at 401. Targets 427/435. Aggressive targets at 445. (Interweek Strategy). Rationale: Momentum oscillators in bullish mode. Signaling a massive upside breakout.

 

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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.

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