Nifty Rebounds and Ends Four-Day Losing Streak...

EQUITY BULLETIN FOR 08 AUGUST 2024

On August 7, the market closed positively for the first time in four sessions, with the Nifty 50 rising by 1.3 percent, though it remained within the previous day's range, following an uptrend in global peers.

The Nifty Put-Call ratio (PCR)increased to 0.88 from 0.71 in the previous session, indicating market sentiment. Volatility decreased significantly, favoring the bulls. If it falls and settles below the 15 mark, it will provide additional support to bullish sentiment. The India VIX, the fear index, declined by 13.73 percent, dropping to 16.17 from 18.74 levels.

Nifty Future Overview

Nifty Futures witnessed a sharp rise and closed with a healthy gain in the last trading session. Now Nifty formed a first reversal candle after multiple losing streaks and we will expect more upside in the upcoming trading sessions.

Now Nifty has major support around 24200 and upside resistance around 24400. Break and sustain above 24400 could propel Nifty towards levels of 24550-24650.

Conversely, a downturn below 24200 may trigger a decline to 24100-24000 levels. Sell on rise around resistance will be a fruitful strategy for the traders.

Trading Strategy for Nifty Futures 

Traders are advised to Buy Nifty Futures around 24200, with a stop loss set below 24050 for potential targets up to 24350—24420 levels.

Bank Nifty Overview    

Bank Nifty still facing hurdles on the upside and unable to breach the hurdles. 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

JINDAL STEEL (08/08/2024)

Buy Jindal Steel Futures around 940 for the upside move till 954 and then to 960 levels in the coming days. Stop loss below 928.           

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