Bulls Fight to Hold Ground: Nifty’s Final Support at 24,400-24,300...

EQUITY BULLETIN FOR 23 OCTOBER 2024

The market took a sharp downturn on October 22, breaking key support levels and hitting a 10-week low during the corporate earnings season. The Nifty 50 tumbled 1.25 percent to close at 24,472, decisively breaching crucial support zones at 24,700 and 24,550.

The Nifty Put-Call ratio (PCR), reflecting market sentiment, fell to 0.73 from 0.81 in the previous session. Volatility continued to rise for the second consecutive session, crossing the 14 mark. If it remains above this level, it could create a challenging environment for bulls. Meanwhile, the India VIX, the fear index, surged 4.6 percent, reaching 14.4.

Nifty Future Overview

Nifty Futures dragged sharply and ended below the crucial support level in the last trading session. Now Nifty Faces Key Test around 24,400-24,300 level which is Crucial support zone for Bulls.

Currently, Nifty has key support around 24400 and resistance near 24650. A break and a sustained move above 24650 could drive Nifty towards 24800-24900 levels.

On the downside, if Nifty breaks below 24400, we could see a decline toward 24250-24000. A "buy on dips" strategy near support levels may benefit traders.

Trading Strategy for Nifty Futures 

Traders are advised to Buy Nifty Futures on dip around 24420, with a stop loss set below 24300 for potential targets up to 24580—24700 levels.

Bank Nifty Overview    

Bank Nifty too slipped from the higher levels and formed a bearish pattern on the daily chart. Now Bank Nifty has major support at 51100 and resistance at 51550. Sustained movement above 51550 could push Bank Nifty towards 51800-52000.

Conversely, a break below 51100 could trigger a correction towards 50800-50500. A "Buy on Dips" strategy around the support zone is the last hope for the bulls.

Trading Strategy

Buy Bank Nifty Future on dip around 51100 with a stop loss below 50700 for the upside movement till 51450—51600 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

Coal India (23/10/2024)

Buy Coal India Futures on dip around 463 for the upside move till 472 and then to 476 levels in the coming days. Stop loss below 456.           

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