REPORT FOR THE WEEK 2/9/24 TO 6/9/24

 

Near Term and Medium Term view on Nifty and Bank Nifty

GLOBAL CUES

The rate cuts expected to be rolled out from September by FED, has limited impact on Indian market. The interest cost as a percentage to PAT has declined from FY 2020 levels, limiting the impact of rate cycle.

Steel and power generation could witness 4-6% improvement in PAT in case of 100 BPS decline.

Nifty (25235.90):

As mentioned earlier, nifty crossed 24855 which was the triple top made earlier and came down by 1000 points near 23893. Again filling the gap of 24687 gave fuel to nifty to cross previous high of 25078. The nifty closed at 25236, which is above the resistance level, keeping the bullish view intact.

Next week View : Nifty has a strong support at 25125 and a stiff resistance near 25460. This could be the trading range of Nifty during the coming week.

Medium Term View – Nifty has a strong support at 24850. This level offers a very strong support to nifty and if it breaks, then next support is at 24450.

 

Long term View :  As the ongoing bullish trend is intact, nifty is expected to move towards 26500/27200 in the coming months and any reversal from there  could drag nifty till 24000.  If due to any reason nifty breaks 23893 (low of this month), it could lead to a further fall up to 22250.

 

Bank Nifty ( 51351)

Next week view: BN has not crossed the psychological comfort level as we see in case of Nifty.

Trading range for the coming week is 50800-51800.

Medium Term view :  Nifty Bank is is likely to move towards 52500 if it closes above 51500 on a weekly closes basis. On the contrary, if it closes below 50900, then 50500/300 act as a strong support.

Long term view : Nifty bank range for the next 3 weeks is 52100-53200. On the down side it could be 50500/49975, if 49975 gets broken then next support is at 46077, if any dramatic change happens in US before elections.

 

DOW Jones Industrial Averages (41563)

The index has closed with a strong note. The bullish view is intact. It can move towards 42000 next week.  From a medium term point of view Dow has the potential to move up to 44000. A sharper correction is expected once it touches 44k.