Expect High Volatility in Domestic Markets with U.S. Election Underway Today...

EQUITY BULLETIN FOR 05 NOVEMBER 2024

The market decisively broke its eight-day consolidation range to t he downside, closing at a three-month low on November 4 with a loss of over one percent, as caution prevailed ahead of the U.S. elections scheduled for November 5. The index tested its August low and traded well below the 20-, 50-, and 100-day EMAs (Exponential Moving Averages), signaling a negative trend.

The Nifty Put-Call Ratio (PCR), an indicator of market sentiment, declined to 0.85 on November 4 from 1.07 in the previous session. Volatility surged to a three-month high, surpassing the 17 mark and extending its upward movement for the fifth consecutive session, intensifying caution among bulls. The India VIX, the fear index, rose 4.94 percent to 16.69, up from 15.90.

Nifty Future Overview

Nifty Futures slashed more than 400 points in the intraday session and broke all the crucial supports for the traders. Now Nifty we will expect both side volatility due to US Presidential elections.

Currently, Nifty has key support around 23900 and resistance near 24150. A break and a sustained move above 24150 could drive Nifty towards 24300-24400 levels.

On the downside, if Nifty breaks below 23900, we could see a decline toward 23800-23700. Sell on rise around resistance and 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 23900, with a stop loss set below 23750 for potential targets up to 24120—24300 levels.

Bank Nifty Overview    

Bank Nifty too ended on a negative note and sustained below the support zone on the daily chart. Now Bank Nifty has major support at 51300 and resistance at 51650. Sustained movement above 51650 could push Bank Nifty towards 51900-52000.

Conversely, a break below 51300 could trigger a correction towards 51100-50900. A "Buy on Dips" strategy around the support zone will be a crucial entry for the traders.

Trading Strategy

Buy Bank Nifty Future on dip around 51300 with a stop loss below 50900 for the upside movement till 51650—51900 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

DIXON (05/11/2024)

Buy Dixon Futures around 14300 for the upside move till 14750 and then to 15000 levels in the coming days. Stop loss below 13800.           

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