Fear in Traders Amid Geopolitical Tensions and New SEBI Regulations...

EQUITY BULLETIN FOR 03 OCTOBER 2024

The Nifty plunged over 500 points from its recent highs, closing on a negative note on October 1. Geopolitical tensions have contributed to this correction from higher levels, and we anticipate further pressure in the domestic markets in the upcoming sessions. Sector-specific movements are likely to drive market trends throughout the rest of the week.

In addition to these challenges, new SEBI regulations for futures and options (F&O) trading, along with concerns about modest growth in the upcoming earnings season, are expected to further weigh on market sentiment.

Nifty Future Overview

Nifty Futures experienced volatile movements in the last trading session, ultimately closing flat. We anticipate similar two-way moves in the upcoming session.

Currently, Nifty has key support around 25,880 and resistance near 26,000. A break and a sustained move above 26,000 could drive Nifty towards 26,100-26,150 levels.

On the downside, if Nifty breaks below 25,880, we could see a decline toward 25,700. A "sell on rise" strategy near resistance levels may prove beneficial for traders.

Trading Strategy for Nifty Futures 

Traders are advised to Sell Nifty Futures around 26050, with a stop loss set above 26200 for potential targets up to 25900—25780 levels.

Bank Nifty Overview    

Bank Nifty breached its immediate support and closed below it in the last session. It now has major support at 52,900 and resistance at 53,600. Sustained movement above 53,600 could push Bank Nifty towards 53,800-54,000.

Conversely, a break below 52,900 could trigger a correction towards 52,000-51,500. A "sell on rise" and "buy on dips" strategy around the support zone is recommended for traders.

Trading Strategy

Buy Bank Nifty Future around 53000 with a stop loss above 52700 for the upside movement till 53400—53600 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

BEL (03/10/2024)

Buy BEL Futures above 288 for the upside move till 293 and then to 296 levels in the coming days. Stop loss below 283.           

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