Gap-Up Opening Will Expect Amid Positive Cues From the Global Front..

EQUITY BULLETIN FOR 14 AUGUST 2024

Bears Dominate on August 13, Dragging Nifty 50 Down by Nearly 1%, Closing at 24,139.

Despite positive global cues, the market experienced a sharp decline on August 13, with key sectors showing weakness. The Nifty 50 dropped 208 points to close at 24,139, finding support at 24,100.

The Nifty Put-Call ratio (PCR), which reflects market sentiment, decreased to 0.78 on August 13 from 1.03 in the previous session. Volatility rose, climbing above the 16 mark, favoring a bearish trend. As long as volatility remains above 15, bulls should exercise caution. The India VIX, the fear index, increased by 1.89% to 16.17, up from 15.87 levels.

Nifty Future Overview

Nifty Futures slipped again from the higher levels in the last trading session. Now Nifty futures formed a bearish pattern on the daily chart and we will expect more downside move in the upcoming trading sessions.

Now Nifty has major support around 24100 and upside resistance around 24300. Break and sustain above 24300 could propel Nifty towards levels of 24400-24480.

Conversely, a downturn below 24100 may trigger a decline to 24000 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 24300, with a stop loss set above 24420 for potential targets up to 24200—24150 levels.

Bank Nifty Overview    

After a flat opening Bank Nifty crashed drastically and closed with a huge loss in the last trading session. Now Bank Nifty Futures has a near support around 49800 and resistance at 50300, sustained movement beyond 50300 could lead Bank Nifty towards 50500-50700 levels.

Conversely, a breach below 49800 may drive it down to 49500-49300 levels. Any sharp decline around 49300 level will be the best entry for the traders.

Trading Strategy

Buy Bank Nifty Future around 49500 with a stop loss below 49200 for the upside movement till 49900—50200 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

PETRONET (14/08/2024)

Buy PETRONET Futures above 370 for the upside move till 376 and then to 382 levels in the coming days. Stop loss below 365.           

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