Gap Down Opening Will Expect Amid Weak Sentiments...

EQUITY BULLETIN FOR 09 SEPTEMBER 2024

The market fell sharply with above-average volumes on September 6, with the Nifty 50 decisively breaking the crucial 25,000 support level and recording the biggest single-day fall since August 5. The Nifty 50 dropped 293 points, or 1.17 percent, to 24,852.

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, plunged to 0.92 on September 6, from 1.33 levels in the previous session. Volatility jumped sharply on Friday, climbing above the 15 mark and making the bulls uncomfortable. If it sustains above the 15 level, then bulls need to be cautious. The India VIX, the fear index, rose by 7.11 percent to 15.22, up from 14.2 levels.

Nifty Future Overview

Nifty Futures slipped sharply, ended on a bearish note on the weekly chart, and looks solid for further downside move. Now Nifty futures may open a gap down, and we expect a sharp downside move in the upcoming sessions.

Now Nifty has major support around 24780 and upside resistance around 25000. Break and sustain above 25000 could propel Nifty towards levels of 25100-25150.

Conversely, a downturn below 24780 may trigger a decline to 24700 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 around 24980, with a stop loss set above 25100 for potential targets up to 24860—24780 levels.

Bank Nifty Overview    

Bank Nifty too ended on a negative note after a sharp fall in the last week. Now Bank Nifty Futures has a near support around 50400 and resistance at 51200, sustained movement beyond 51200 could lead Bank Nifty towards 51500-51700 levels.

Conversely, a breach below 50400 may drive it down to 50100-50000 levels. Any sharp decline around 50000 level will be the best entry for the traders.

Trading Strategy

Sell Bank Nifty Future around 51100 with a stop loss above 51400 for the downside movement till 50800—50500 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

GRANULES (09/09/2024)

Sell Granules Futures below 680 for the downside move till 665 and then to 655 levels in the coming days. Stop loss above 695.           

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