The larger market texture is bullish but buying on dips and selling on rallies will be the ideal strategy for day traders, according to analysts.
With a bullish candle, the Nifty has filled its bearish gap zone and is now heading towards 24,870—the target of range breakout—with the downside being shifted higher to 24,590, according to Aditya Gaggar, director at Progressive Share Brokers.
For day traders now, 24,650/80,600 and 24,575/80,300 are the key support zones for the Nifty, while 24,800/81,000 and 24,835/81,200 will be the crucial resistance areas. However, below 24,575/80,300, traders may prefer to exit long positions, according to Shrikant Chouhan, head of equity research at Kotak Securities.
In intraday charts, the index is holding a "higher-high and higher-low series formation, which supports a further uptrend from the current levels," Chouhan said. "We are of the view that the larger market texture is bullish, but buying on dips and selling on rallies would be the ideal strategy for day traders."
"This week’s Japan inflation data and FOMC minutes will provide insights into future interest-rate trajectories and market trends," Vinod Nair, head of research at Geojit Financial Services, said.
The GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 13 points or 0.05% at 24,688 as of 06:44 a.m.
F&O Action
The Nifty August futures were up 0.47% to 24,711 at a premium of 13 points, with open interest down 1.77%.
The Nifty Bank August futures were up by 0.81% to 50,892 at a premium of 89 points, while its open interest was down by 8.5%.
The open interest distribution for the Nifty 50 Aug. 22 expiry series indicated most activity at 25,000 call strikes, with 24,300 put strikes having maximum open interest.
For the Bank Nifty options expiry on Aug. 21, the maximum call open interest was at 51,000 and the maximum put open interest was at 50,000.
FII/DII Activity
Overseas investors stayed net sellers of Indian equities on Tuesday for the second consecutive day.
Foreign portfolio investors offloaded stocks worth approximately Rs 1,458 crore, while domestic institutional investors stayed net buyers for the 12th successive session and bought equities worth Rs 2,252.1 crore, the NSE data showed.
Market Recap
The NSE Nifty 50 extended its gains for a fourth consecutive session and the S&P BSE Sensex continued its rally after a one-day blip to record their highest closing since Aug. 2, as shares of finance and IT companies led the gains.
The Nifty ended 126.20 points or 0.51%, higher at 24,698.85 and the Sensex was 378.18 points or 0.47%, up at 80,802.86. During the day, the Nifty and the Sensex rose as much as 0.6% to 24,734.30 and 80,942.96, respectively.
Shares of Reliance Industries Ltd., Larsen & Toubro Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd. and SBI Life Insurance Co. contributed the most to the gains in the Nifty.
Bharti Airtel Ltd., ITC Ltd., Oil & Natural Gas Corp., Adani Enterprises Ltd. and Apollo Hospitals Enterprises Ltd. weighed on the index the most.
Major Stocks In News
Zaggle Prepaid Ocean Services: Zuzu Software Services sold 4% stake in the company via open market on Tuesday.
GE T&D India: Promoters are in process of reviewing their shareholding structure and express sits strong intention to continue as the majority shareholder block of the company.
Dhanuka Agritech: The company has approved buyback of five lakh shares at Rs 2,000 per share. The total value of buyback is worth Rs 100 crore.
Petronet LNG: The company has entered into a MoU for supply of LNG with LTL Holdings in Sri Lanka.
CESC: The company's arm incorporated a wholly owned subsidiary namely Ecofusion Power to explore opportunities in renewable power sector.
Genus Power Infrastructures: The company received three orders worth Rs 3,609 crore for the appointment of advanced metering infrastructure service providers.
GIC Housing Finance: The company has clarified that the report about GIC considering a stake sale is incorrect and is not aware of any developments in this matter.
BGR Energy Systems: The company has received a contract termination letter from Jharkhand Urja Sancharan Nigam. There is no material impact on financials and operations.
Exide Industries: The company made an investment of Rs 75 crore in its arm. Also, its total investment in its arm stands at Rs 2,652 crore.
RMC Switchgears: The company's unit received a nod from Rajasthan Renewable Energy Corp. to set up 50-megawatt renewable energy park in the state.
NHPC: The company’s 510 megawatt Teesta-V power station in Sikkim was halted due to undergoing restoration following the October flash floods.
Cyient: The company approved the sales of 14.5% stake in its arm Cyient DLM via block deal. The company expects to complete the transaction on Aug. 21.
Sansera Engineering: The company has approved raising funds up to Rs 1,200 crore via QIP and other means.
PI Industries: The UK Companies Court has approved the acquisition of Plant Health Care for £32.8 million, with the transaction set to be finalized by Aug. 20.
Global Cues
Stocks in the Asia-Pacific region got off to a negative start on Wednesday taking cues from Wall Street's overnight losses that lost steam near their all-time highs.
Benchmarks in Japan plunged over a percent while those in South Korea and Australia were marginally lower. The Nikkei 225 was 402 points or 1.06% lower at 37,664, and the Kospi was 0.9 points or 0.04% lower at 2,694 as of 06:28 a.m.
Meanwhile, the Bank of Thailand and Bank Indonesia will announce their key interest rate decision later in the day. Both the Asian central banks are poised to leave the rate unchanged, according to Bloomberg.
In another hit to the already weak economy, China's share in JPMorgan's flagship emerging-market bond index as the index provider proposed to tweak how it calculated the composition.
On the other side, the US stocks lost steam on Tuesday after being on the cusp of hitting another all-time high and paused the S&P 500’s longest winning streak in 20 years. The S&P 500 and Nasdaq Composite declined 0.20% and 0.33%, respectively. The Dow Jones Industrial Average advanced 0.15%.
Brent crude was trading 0.04% higher at $77.23 a barrel as of 06:37 a.m. Gold rose 0.05% to $2,515.32 an ounce.
Key Levels
US Dollar Index at 101.33.
US 10-year bond yield at 3.80%.
Brent crude was up 0.04% at $77.23 per barrel.
Bitcoin was down 0.36% at $59,098.45.
Gold was up 0.05% at $2,515.32.
Money Market
The Indian rupee closed stronger on Tuesday as the US dollar index and crude oil prices fell.
The currency appreciated 8 paise to close at Rs 83.79 after opening flat at 83.87 against the US dollar, according to Bloomberg data. It closed at 83.87 on Monday.
RECOMMENDED FOR YOU
Trade Setup For Nov. 11: Nifty 50 Faces Key Support At 23,800
Nov 10, 2024
Trade Setup For Nov. 5: Nifty 50 Sees Support At 23,800 Ahead Of US Elections
Nov 05, 2024
Trade Setup For Oct 30: Nifty 50 Faces Key Support At 24,400–24,300
Oct 30, 2024
Trade Setup For Oct. 18: Nifty Forms Strong Bearish Red Candle, Sees Next Support At 24,750
Oct 18, 2024
POPULAR