Bears Take Charge Amid Tensions in Middle East Region...

EQUITY BULLETIN FOR 05 AUGUST 2024

On August 2, bearish sentiment dominated the market, pushing the benchmark indices down by over 1% amid global market jitters. The Nifty 50 ended Friday at 24,718, up 293 points or 1.2%, while the Bank Nifty fell by 214 points or 0.41% to 51,350. The NSE saw 1,497 shares decline, with 851 shares advancing.

The Nifty Put-Call ratio (PCR), reflecting market sentiment, dropped to 0.91 from 1.29 in the previous session. Volatility spiked, surpassing 14 for the first time since July 22, unsettling the bulls. The India VIX, the fear gauge, surged 10.75% to 14.32, up from 12.93.

Nifty Future Overview

Nifty Futures witnessed a sharp decline and closed on a weak note in the last trading session. Now Nifty formed another weak pattern on the weekly chart and we will expect a sharp downward movement in the upcoming trading session.

Now Nifty has major support around 24500 and upside resistance around 24800. Break and sustain above 24800 could propel Nifty towards levels of 25000-25050.

Conversely, a downturn below 24500 may trigger a decline to 24400-24250 levels. Sell on rise around resistance will be a fruitful strategy for the traders.

Trading Strategy for Nifty Futures 

Traders are advised to Sell Nifty Futures below 24600, with a stop loss set above 24800 for potential targets up to 24380—24300 levels.

Bank Nifty Overview    

Bank Nifty too looks weak and ready for the fresh dive. Bank Nifty Futures has a near support around 51100 and resistance at 51700, sustained movement beyond 51700 could lead Bank Nifty towards 52000-52200 levels.

Conversely, a breach below 51100 may drive it down to 50600-50300 levels. Any sharp decline around the support level will be the best entry for the traders.

Trading Strategy

Sell Bank Nifty Future below 51100 with a stop loss above 51500 for the downside movement till 50700—50400 levels in an intraday trading session.

In conclusion, traders are advised to remain vigilant amidst market fluctuations and capitalize on strategic entry and exit points to optimize their trading endeavors.

Stock Pick of the Day

ONGC (05/08/2024)

Sell ONGC Futures below 327 for the downside move till 321 and then to 317 levels in the coming days. Stop loss above 332.           

Stay tuned for further insights and updates from Millennial Investor Services - Your Trusted Stock Market Advisory Partner.