Up Again For Benchmark Nifty

*Morning Action @ 7 AM – Friday, September 27th 2024*

# Gift Nifty is holding a tad above the dotted lines indicating Nifty to trade with positive bias on the last day of week.

# Focus now turns to US PCE inflation to trickle on Friday, September 27th. at 6PM IST.

Friday’s release of the Fed’s preferred inflation gauge – the Personal Consumption and Expenditures (PCE) Price Index – is also likely to force market participants to recalibrate some of their bullish bets.

*7:00 AM GLOBAL UPDATE:*
# GIFT Nifty 🇮🇳: (+10, 26360)
# Dow Futures: (-25, 42150)
# Nasdaq 100 Futures (-6, 20109)

# Nikkei (+216, 39142)
# Hang Seng (+522, 20447)

# Dow Jones (+260, 42175)
# Nasdaq (+108, 18190)
# Bovespa (+1423, 133010).

MARKET TRENDS:
# Global: Positive
# FII: Positive (+629.96 Cr)
# DII: Positive (+2405.12 Cr)
# Sentiment: Bullish
# Market Breadth: Positive
# Technicals: Higher high/low
# F&O: 25500 – 27000 zone.

# INDIA VIX 12 (-5.81%)
# Nifty PCR (31st Oct) 1.11
# Bank Nifty PCR (30th Oct) 1.03

# Nifty Outlook: Nifty is likely to aim into yet another record high.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

Nifty Technically:
Nifty (CMP: 26216)
SUPPORT: 26107/25750
RESISTANCE: 26500/27100
RANGE: 26100-26450
BIAS: Positive
21 DMA: 25394
50 DMA: 24928
200 DMA: 23021

Bank Nifty Technically:
BANK NIFTY (CMP 54375):
SUPPORT: 54000/53670
RESISTANCE: 54900/55500
RANGE: 54100-55100
BIAS: Positive
21 DMA: 52222
50 DMA: 51502
200 DMA: 49015

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

# Wall Street enjoyed yet another strong session in Thursday’s trade as investors cheered a round of encouraging economic data and strong earnings from memory chipmaker Micron Technology.

# The second-quarter US GDP growth was confirmed at a solid 3%, easing concerns of a broader economic slowdown.

# According to CME Group’s FedWatch Tool, futures traders are assigning a 59% chance to another half-point cut – up from 37% a week ago – at the next Fed meeting.

# Micron’s shares skyrocketed 14% after the company delivered upbeat quarterly guidance and exceeded analysts’ expectations for its fourth-quarter results.

# Copper futures have hit the highest levels in over two months at $4.40 per pound after top consumer China unveiled a slate of easing measures to support the economy.

# WTI crude oil futures tumbled to around $67.6 per barrel after top exporter Saudi Arabia said it is ready to raise output. Saudi Arabia is prepared to abandon its unofficial $100 per barrel oil price target and to increase production in December, even if it leads to a prolonged period of lower prices. (Source: The Financial Times).

# COMEX Gold trades firm at $2673 per ounce.

# Copper futures continues to flirt with their highest levels in over two months at $4.59 per pound after top consumer China unveiled a slate of easing measures to support the economy.

NEED TO KNOW:

# The year 2024 is panning out to be too good for Dalal Street as YTD, Nifty is already up 20.64%.

# No wonder, Nifty Bulls must be simply blushing…

# We suspect, This Friday, Nifty is likely to enjoy strong bullish session and most importantly, the benchmark Nifty will aim to end the day and THE week with a bang.

# The Positive catalyst:

Strong overnight gains at Wall Street where Dow Jones hit a new record high and Nasdaq 100 climbed 1.3%, driven by strong quarterly guidance by Micron Technology.

Micron’s shares skyrocketed 16% after the company delivered upbeat quarterly guidance and exceeded analysts’ expectations for its fourth-quarter results.

 

# The 6-positive catalyst driving sentiments:

1) Liquidity, liquidity and liquidity. In yesterday’s trade, FIIs turned out to be net buyers to the tune of Rupees 630 crores while DIIs bought shares to the tune of Rupees 2405 crores.

2) Corporate India is in pretty good shape.

3) Indian economy’s resilience.

4) China’s widest stimulus in nearly a decade.

5) A cooldown in inflation will allow the Fed to cut interest rates several times this year.

6) The Fed’s 50 basis point jumbo rate cut is likely to trigger expectations of global interest rate cuts.

# Meanwhile, after inaugural Fed rate cut, focus now turns to US PCE inflation to trickle on Friday, September 27th at 6 PM IST.

# Buzzing stocks:

1) Auto stocks were the biggest outperformers and on the top gear, with the Nifty Auto index scaling a record high of 27526 on reports that SEBI has approved Hyundai Motor India’s Rs 25,000-crore initial public offering (IPO).

2) Healthcare service provider Krsnaa Diagnostics was in limelight following the announcement of a strategic investment in Apulki Healthcare (Apulki), India’s first Public Private Partnership (PPP) dedicated to cancer, and cardiac care hospitals.

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

Nifty (26216): Buy at CMP. Stop at 24891. Zone. Targets 26350/26500. Aggressive targets at 26900-27100 zone.

Bank Nifty (54375): Buy at CMP. Stop at 53303. Targets 54500/54900. Aggressive targets at 55300-55700 zone.

# Our chart of the day is bullish on HDFC AMC, TATA POWER, POWERGRID, ITC and UBL on any intraday weakness with an interweek perspective.

# The 1 Stock to Buy Right Now:

Buy POWERGRID (CMP 365): Buy at CMP. Stop at 339. Targets 373/389. Aggressive targets at 419. (Interweek Strategy). Rationale: Momentum oscillators in bullish mode. Higher high/low.

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