Table of Contents
Trade4wealth Trading Academy: Market Insights and Technical Analysis
Positive Opening Expected for Sensex and Nifty 50
- Global Cues: Positive global indicators suggest a higher opening for Sensex and Nifty 50.
- Asian Markets: Mixed performance with Japan’s Nikkei 225 down, while South Korea’s Kospi is up.
- US Market Rally: Boosted by the Fed’s decision to keep interest rates unchanged, hinting at potential rate cuts in September.
- Nvidia Surge: Nvidia shares soared 13%, adding $330 billion in market value.
- Fiscal Deficit: India’s fiscal deficit narrowed significantly in Q1 FY25.
- Core Sector: Growth declined to a 20-month low in June.
- Oil Prices: Brent crude futures rose to $81.51 per barrel; WTI crude futures increased to $78.60 per barrel.
- Japan PMI: Factory activity contracted in July, with PMI falling to 49.1 from 50.0 in June.
- Dollar and Treasury Yields: Both declined following the Fed’s statement and Powell’s comments.
- Securities in Ban Period: Granules, India Cements.
Technical Analysis
Nifty 50
- Resistance Levels: Currently facing resistance at the 25,000 level, with immediate hurdles at 24,984.
- Support Levels: Immediate support levels are at 24,750 and 24,600.
- Chart Patterns: Positive chart patterns indicate higher tops and bottoms.
- Upside Potential: A decisive move above 25,100 can lead to significant upside.
- Historical Performance: August has been a positive month for Nifty, with gains in three out of the last four years.
- Recent Performance: Nifty ended July with a 3.9% gain, following a 6.6% advance in June.
Bank Nifty
- Trading Range: Traded in a narrow 300-point range but ended above 51,500.
- Moving Averages: Remains below the 21-Day Exponential Moving Average.
- RSI Indicator: Daily RSI indicates a bullish crossover.
- Rally Potential: A sustained move above 51,600 can trigger a rally towards 52,000 – 52,200.
- Support Levels: Support levels are at 51,200 – 51,000.
- Outlook: Remains bearish with resistance at 52,000 and trading below the 10 and 20-Day Exponential Moving Average.
- Strategy: A sell-on-rise strategy is advised.
Nifty 50 Call Options Data
- 25,100 Strike: 17.46 lakh OI added, premium 28.6.
- 25,150 Strike: 10.11 lakh OI added, premium 18.25.
- 25,050 Strike: 8.35 lakh OI added, premium 43.2.
- 24,900 Strike: 15.05 lakh OI shed, premium 115.3.
Nifty 50 Put Options Data
- 24,900 Strike: 17.91 lakh OI added, premium 57.15.
- 24,950 Strike: 16.39 lakh OI added, premium 77.45.
- 24,800 Strike: 14.04 lakh OI added, premium 30.15.
Note: The above technical analysis is sourced from various popular news articles and is provided for reference purposes only. Please conduct your own due diligence.
Stocks in the News
- Tata Steel: EBITDA at ₹6,694 crore, higher than expected. EBITDA margin at 12.2% vs. 11.1%. India business EBITDA per tonne at ₹13,667 vs. ₹13,450.
- Bank of Baroda: Deposits up 8.9% YoY to ₹13.06 lakh crore. Advances up 8.1% YoY to ₹10.71 lakh crore. Net Interest Income up 5.5% YoY to ₹10,996.7 crore. Net profit up 9.5% to ₹4,458.15 crore.
- GE T&D: Revenue up 34% to ₹958.3 crore. EBITDA up 259% to ₹182.2 crore. EBITDA margin at 19% from 7.1% last year. Net profit at ₹134.54 crore from ₹28.2 crore last year.
- Aster DM Healthcare: Net profit of ₹5,152.2 crore. Exceptional gain of ₹372.7 crore. EBITDA up 22% to ₹101.3 crore.
- Coal India: Consolidated net profit rose 4.2% in the first quarter of fiscal 2025, posting a profit of ₹10,943.5 crore.
- Vedanta: Received approval from BSE and NSE to split into six independent listed companies.
- Wipro: Secured a multi-year contract with global automotive supplier MAHLE to upgrade its IT infrastructure with hybrid cloud solutions.
FAQs
1. What factors are contributing to the positive opening for Sensex and Nifty 50?
Global cues, a rally in the US markets driven by the Fed’s decision to keep interest rates unchanged, and a surge in Nvidia’s shares are key factors contributing to the positive opening for Sensex and Nifty 50.
2. What is the current status of Asian markets?
Asian markets have shown mixed performance. Japan’s Nikkei 225 is down, while South Korea’s Kospi is up.
3. How have oil prices moved recently?
Brent crude futures rose to $81.51 per barrel, and WTI crude futures increased to $78.60 per barrel.
4. What are the immediate resistance and support levels for Nifty?
Nifty is facing resistance at the 25,000 level, with immediate hurdles at 24,984. Support levels are at 24,750 and 24,600.
5. What is the outlook for Bank Nifty?
Bank Nifty remains bearish with resistance at 52,000 and is trading below the 10 and 20-Day Exponential Moving Average. A sell-on-rise strategy is advised.
6. What is the recent performance of Nifty and its potential for August?
Nifty ended July with a 3.9% gain, following a 6.6% advance in June. Historically, August has been a positive month for Nifty, with gains in three out of the last four years.
7. Which stocks are currently in the news and why?
- Tata Steel: Higher-than-expected EBITDA and improved EBITDA margin.
- Bank of Baroda: Significant YoY increase in deposits, advances, net interest income, and net profit.
- GE T&D: Substantial revenue and EBITDA growth, with a notable rise in net profit.
- Aster DM Healthcare: Exceptional gain and increased EBITDA.
- Coal India: Rise in consolidated net profit in the first quarter of fiscal 2025.
- Vedanta: Approval to split into six independent listed companies.
- Wipro: Secured a multi-year contract with MAHLE for IT infrastructure upgrade.
8. Which securities are currently in the ban period?
Granules and India Cements are currently in the ban period.
9. What do the RSI and moving averages indicate for Bank Nifty?
The daily RSI indicates a bullish crossover, while Bank Nifty remains below the 21-Day Exponential Moving Average.
10. What are the significant option data points for Nifty?
- Call Options:
- 25,100 Strike: 17.46 lakh OI added, premium 28.6.
- 25,150 Strike: 10.11 lakh OI added, premium 18.25.
- 25,050 Strike: 8.35 lakh OI added, premium 43.2.
- Put Options:
- 24,900 Strike: 17.91 lakh OI added, premium 57.15.
- 24,950 Strike: 16.39 lakh OI added, premium 77.45.
- 24,800 Strike: 14.04 lakh OI added, premium 30.15.
Conclusion
In conclusion, the Sensex and Nifty 50 are poised for a positive opening, buoyed by favorable global cues, a rally in the US markets, and a significant rise in Nvidia’s shares. While the Asian markets exhibit mixed performances, the broader sentiment remains optimistic. Key technical levels for Nifty and Bank Nifty suggest potential for further gains, though caution is advised with a sell-on-rise strategy for Bank Nifty. Noteworthy performances from major stocks like Tata Steel, Bank of Baroda, and Wipro also add to the positive outlook. Investors should stay informed and consider these insights when making their trading decisions. Stay tuned to Trade4Wealth Trading Academy for continuous updates and expert analysis.
Disclaimer:
The information provided in this blog post is for educational and informational purposes only. It should not be construed as financial advice or a recommendation to buy or sell any securities. Always do your own research and consult with a qualified financial advisor before making investment decisions.
Also Read : Mastering Best Option Trading: Unleashing the Power of PCR Ratio in Nifty and Bank Nifty.
