Nifty 50 Surges for Fifth Consecutive Day, Now Eyes on 25K Mark Again...

EQUITY BULLETIN FOR 22 AUGUST 2024

On August 21, the Nifty 50 continued its upward momentum for the fifth straight session, gaining 71 points to close at 24,770, forming a bullish candlestick pattern on the daily chart. Momentum indicators RSI and MACD also signaled a positive bias.

The Nifty Put-Call ratio (PCR), reflecting market sentiment, dipped slightly to 1.24 from 1.27 in the previous session. Volatility decreased for the fifth consecutive session, staying below the 14 mark, which is favorable for bulls. The India VIX, the fear gauge, dropped by 3.53% to 13.33 from 13.82. A rise above 14.6 could shift the trend in favor of bears.

Nifty Future Overview

Nifty Futures ended on a bullish note with a solid bullish pattern in the last trading session. Now Nifty futures still looks good on the chart and we will expect a sharp upside move for the 25K mark in upcoming sessions.

Now Nifty has major support around 24700 and upside resistance around 24850. Break and sustain above 24850 could propel Nifty towards levels of 24930-25000.

Conversely, a downturn below 24700 may trigger a decline to 24600 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 around 24700, with a stop loss set below 24580 for potential targets up to 24820—24890 levels.

Bank Nifty Overview    

After a weak trading session, Bank Nifty recovered well in the final hour and closed on a good note in the last trading session. Now Bank Nifty Futures has a near support around 50600 and resistance at 50900, sustained movement beyond 50900 could lead Bank Nifty towards 51100-51300 levels.

Conversely, a breach below 50600 may drive it down to 50400-50300 levels. Any sharp decline around 50500 level will be the best entry for the traders.

Trading Strategy

Buy Bank Nifty Future above 50900 with a stop loss below 50600 for the upside movement till 51250—51400 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

AU BANK (22/08/2024)

Buy AU Bank Futures around 625 for the upside move till 638 and then to 645 levels in the coming days. Stop loss below 615.           

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