Global Market Zooms After a Bloodbath, Nifty Opens Gap-up...

EQUITY BULLETIN FOR 06 AUGUST 2024

The market experienced substantial losses for another session, declining by 2.7 percent due to severe global weakness on August 5. The Nifty Put-Call ratio (PCR), a key indicator of market sentiment, dropped to 0.72 on August 5, down from 0.91 in the previous session.

Volatility surged sharply by 61.66 percent intraday on Monday, creating a favorable trend for bears. The India VIX, often referred to as the "fear gauge," rose by 42.23 percent to 20.37, marking its highest closing level since June 4.

Nifty Future Overview

Nifty Futures witnessed a bloodbath and closed with a huge loss in the last trading session. Now Nifty may open gap up with support from global market.

Now Nifty has major support around 24000 and upside resistance around 24350. Break and sustain above 24350 could propel Nifty towards levels of 24500-24650.

Conversely, a downturn below 24000 may trigger a decline to 23900-23750 levels. Trade cautiously with levels only.

Trading Strategy for Nifty Futures 

Traders are advised to Buy Nifty Futures above 24300, with a stop loss set below 24100 for potential targets up to 24480—24600 levels.

Bank Nifty Overview    

Bank Nifty too crashed sharply and settled below 50K mark. Bank Nifty Futures has a near support around 49700 and resistance at 50300, sustained movement beyond 50300 could lead Bank Nifty towards 50600-50900 levels.

Conversely, a breach below 49700 may drive it down to 49200 levels. Any sharp decline around the support level will be the best entry for the traders.

Trading Strategy

Buy Bank Nifty Future above 50100 with a stop loss below 49700 for the upside movement till 50500—50800 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

CANBK (06/08/2024)

Buy Canbk Futures above 106 for the upside move till 109 and then to 111 levels in the coming days. Stop loss below 103.50.           

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