Market Indicates Strong Start, Keep Banking on Radar...

EQUITY BULLETIN FOR 09 AUGUST 2024

The benchmark indices ended lower in a volatile session on August 8, erasing over half of the previous day’s gains. This decline was attributed to weak global cues and the RBI's decision to keep policy rates unchanged. The Nifty 50 dropped 181 points to close at 24,117.

The Nifty Put-Call ratio (PCR), reflecting market sentiment, increased to 1.04 on August 8, up from 0.88 in the previous session. Volatility also ticked up, staying above the 16 mark, which is unfavorable for bulls. The India VIX, the fear gauge, rose 2.67 percent to 16.6 from 16.17 levels.

Nifty Future Overview

Nifty Futures mostly erased the previous day's gains but formed a reversal candle on the 4-hour candle in the last trading session. Now Nifty looks good for the upside move amid global support and we will expect more upside in the upcoming trading sessions.

Now Nifty has major support around 24100 and upside resistance around 24250. Break and sustain above 24250 could propel Nifty towards levels of 24350-24450.

Conversely, a downturn below 24100 may trigger a decline to 24000 levels. Buy on dips around support will be a fruitful strategy for the traders.

Trading Strategy for Nifty Futures 

Traders are advised to Buy Nifty Futures above 24250, with a stop loss set below 24150 for potential targets up to 24350—24420 levels.

Bank Nifty Overview    

Bank Nifty looks more stable on the charts and ready for the fresh reversal. Bank Nifty Futures has a near support around 50000 and resistance at 50500, sustained movement beyond 50500 could lead Bank Nifty towards 50800-51000 levels.

Conversely, a breach below 50000 may drive it down to 49700-49600 levels. Any sharp decline around the support level will be the best entry for the traders.

Trading Strategy

Buy Bank Nifty Future above 50500 with a stop loss above 50200 for the upside movement till 50800—50900 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

FEDERAL BANK (09/08/2024)

Buy Federal Bank Futures around 195 for the upside move till 198 and then to 200 levels in the coming days. Stop loss below 192.           

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