Nifty Settled above 25K Mark But Formed Spinning Top Candle...

EQUITY BULLETIN FOR 02 AUGUST 2024

The benchmark index opened with a gap-up, surpassing the 25,000 milestone. Despite gradually losing momentum, the Nifty50 index ended the session positively, closing above the 25,000 mark for the first time.

The Nifty Put-Call ratio (PCR), reflecting market sentiment, has dropped below 1 to 0.95. Volatility remains within the 12-13 range. Compared to the previous session, the India VIX, the fear index, closed at 12.93, down 2.42 percent.

Nifty Future Overview

Nifty Futures again performed well in the early hours but erased all intraday gain in the last trading session. Now Nifty formed a spinning top candlestick pattern on the higher side and we will expect a sharp downward movement in the upcoming trading session.

Now Nifty has major support around 24900 and upside resistance around 25050. Break and sustain above 25050 could propel Nifty towards levels of 25120-25150.

Conversely, a downturn below 24900 may trigger a decline to 24800-24750 levels. Buy on dips around support will be a fruitful strategy for the traders.

Trading Strategy for Nifty Futures 

Traders are advised to Sell Nifty Futures below 24900, with a stop loss set above 25050 for potential targets up to 24780—24700 levels.

Bank Nifty Overview    

Bank Nifty again ended on a flat note with a bearish candle in last trading session. Now Bank Nifty Futures has a near support around 51500 and resistance at 52100, sustained movement beyond 52100 could lead Bank Nifty towards 52300-52500 levels.

Conversely, a breach below 51500 may drive it down to 51100-50800 levels. Any sharp decline around the support level will be the best entry for the traders.

Trading Strategy

Sell Bank Nifty Future below 51500 with a stop loss above 51800 for the downside movement till 51200—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

PFC (02/08/2024)

Sell PFC Futures below 545 for the downside move till 535 and then to 525 levels in the coming days. Stop loss below 556.           

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