Nifty Just Kissed 25K Mark But Closes Flat...

EQUITY BULLETIN FOR 30 JULY 2024

The market had a strong start to the week, approaching the 25,000 mark, but erased gains in the second half, ending flat on July 29. The Nifty 50 recorded a new closing high at 24,836.10, up by 1.25 points. The 24,600-24,500 zone is likely to be a key support area.

The Nifty Put-Call ratio (PCR) dropped to 1.14 from 1.36 in the previous session, reflecting a shift in market sentiment. Volatility recovered its previous day's losses but remained below all key moving averages, suggesting favorable conditions for bulls. The India VIX rose 5.7 percent to 12.95 from 12.25 levels.

Nifty Future Overview

After a tremendous move Nifty erased all intraday gains and formed a reversal candle in the last trading session. Now we will expect some profit booking from the higher levels.

Now Nifty has major support around 24800 and upside resistance around 24950. Break and sustain above 24950 could propel Nifty towards levels of 25020-25060.

Conversely, a downturn below 24800 may trigger a decline to 24720-24650 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 24970, with a stop loss set above 25060 for potential targets up to 24850—24800 levels.

Bank Nifty Overview    

Bank Nifty too dragged sharply and formed a bearish candle on the daily chart in the last trading session. Now Bank Nifty Futures has a near support around 51100 and resistance at 51800, sustained movement beyond 51800 could lead Bank Nifty towards 52000-52300 levels.

Conversely, a breach below 51100 may drive it down to 50800-50600 levels. Any sharp decline around the support level will be the best entry for the traders.

Trading Strategy

Sell Bank Nifty Future around 51600 with a stop loss above 51900 for the downside movement till 51300—51000 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

SBIN (30/07/2024)

Buy SBIN Futures on dip around 868 for the upside move till 888 and then to 900 levels in the coming days. Stop loss below 848.           

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