GIFT Nifty 🇮🇳: (-62, 26156)
Market Recap:
Nifty registered massive gains in Thursday’s trade, raced towards its all-time-high.
RIL (+2.01%) led from the front. Nifty Mid-cap and Nifty Small-cap seen uninspired…
Bank Nifty mirrored Nifty gains scaled a new all-time-high at 59440.10 mark.
The Big Question:
Will Nifty’s rally fizzle out amidst weak overnight lead from Wall Street?
The Road Ahead:
Our call of the day suggests after a cautious start, positive wave shall beckon Dalal Street with immediate goalpost at Nifty’s all-time-high 26277.35 mark.
The Biggest Positive Catalysts:
1) Wall Street stock futures are rebounding this Friday morning as AI rally still reignites Wall Street after Nvidia’s earnings and guidance smashed expectations.
2) Optimism surrounding a potential US–India trade agreement.
3) India’s retail inflation sliding to a record 0.25% in October, well below the RBI’s tolerance band — strengthening hopes for a December rate cut.
4) FIIs turning buyers this week to the tune of ₹1,578 crore.
5) WTI crude oil futures tumbling towards $58.50 per barrel, after reports indicated the US is pushing to end the Russia-Ukraine war.
6) NDA’s decisive win in Bihar, reinforcing political stability and continuity in reforms.
The Biggest Headwinds:
1) Concerns over stretched AI valuations remain.
2) Rapidly fading expectations of a December U.S. Fed rate cut.
Technically Speaking:
Technically speaking, Nifty is signalling a massive breakout on the upside — the benchmark should hit its all-time-high (26277.35) sooner than later.
The Gyan Mantra is to stay optimistic as long as Nifty holds above the 25,900-support zone — dips remain buying opportunities in the near term.
Nifty is above its 21 DMA (25837), 50 DMA (25428) and its 100 DMA (25188). Nifty’s 200 DMA at 24501 mark.
Long Story Short: If Nifty reclaims its all-time high of 26,277.35, it will mark the end of a 14-month pause.
We remain quite bullish on Nifty, and this upward momentum could soon become the new normal on Dalal Street.
If Nifty reaches its all-time high of 26,277.35, it will mark the end of a 14-month pause.
At the moment, we remain quite bullish on Nifty, and this upward momentum could soon become the new normal on Dalal Street.
Bottom-line:
If Nifty reaches its all-time high of 26,277.35, it will mark the end of a 14-month pause.
At the moment, we remain quite bullish on Nifty, and this upward momentum could soon become the new normal on Dalal Street.
Now, here is the preferred trade on Nifty and Bank Nifty:
Nifty (26192): Buy at CMP. Stop 25977. Targets 26277/26507. Aggressive targets at 26900-27100 zone.
Bank Nifty (59348): Buy at CMP. Stop at 58181. Targets 59700/59950. Aggressive targets at 60300-60500 zone.
Our chart of the day is bullish on HDFC BANK, SBI LIFE, and LARSEN on any early excessive intraday weakness with an interweek/Intermonth perspective.
The 1 Stock to Buy Right Now: Buy LARSEN (CMP 4037): Buy at CMP. Stop at 3909. Targets 4063/4133. Aggressive targets at 4221. (Interweek Strategy). Rationale: Signalling a massive breakout on the upside. Key interweek support 3801. Major hurdles only at 4063 mark. The stock is signaling a massive breakout on the upside. 200-DMA at 3551.
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