Domestic Market Continued Downtrend Amid Global Volatility...

EQUITY BULLETIN FOR 11 NOVEMBER 2024

The Nifty 50 experienced moderate losses on November 8, closing with a 0.6% decline amid volatility, and recording above-average volumes, which reflect market weakness. The index attempted to enter positive territory, but bears dominated in the final hours, continuing the downtrend. With the domestic market in an oversold zone, a potential short-covering rally may be anticipated in upcoming sessions.

The Nifty Put-Call Ratio (PCR), which gauges market sentiment, rose slightly to 0.91 from 0.90. While volatility is gradually decreasing, it remains elevated (above 14), signaling caution for bulls. For bullish momentum to regain strength, it’s crucial for volatility to stabilize around the 12-13 zone. The India VIX declined by 3.15% to 14.47 on Friday, losing 9.01% over the week.

Nifty Future Overview

Nifty Futures again closed on a negative note but formed a short-term base on the weekly chart. Now, Nifty, we will expect a sharp short-covering this week.

Currently, Nifty has near support around 24150 and resistance around 24300. A break and a sustained move above 24300 could drive Nifty towards 24380-24460 levels for the day. On a weekly basis, 24500 would be a major hurdle. If Nifty breaches 24500, then we will expect upside targets of 24800+ levels.

On the downside, if Nifty breaks below 24150, we could see a decline toward 24050-23900. Buy on dips around support will be the crucial strategy for the day.

Trading Strategy for Nifty Futures 

Traders are advised to Buy Nifty Futures around 24250, with a stop loss set below 24100 for potential targets up to 24370—24450 levels.

Bank Nifty Overview    

Bank Nifty maintained a lower-highs, lower-lows pattern, showing bearish signals for the second consecutive session on the daily charts, with below-average volumes. Now Bank Nifty has major support at 51650 and resistance at 51900. Sustained movement above 51900 could push Bank Nifty towards 52100-52250.

Conversely, a break below 51650 could trigger a correction towards 51400-51300. A "Buy on Dips" strategy around the support zone will be a crucial entry for the traders.

Trading Strategy

Buy Bank Nifty Future above 51900 with a stop loss below 51650 for the upside movement till 52150—52250 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

SBIN (11/11/2024)

Buy SBIN Futures above 855 for the upside move till 878 and then to 900 levels in the coming days. Stop loss below 830.           

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