Nifty 50 Trade Setup & US Fed Rate Cut Impact
The Indian stock market finished on a higher note despite trading sideways throughout the week. The Nifty 50 index finished at 24,823, logging a weekly gain of 283 points or 1.15 per cent. The BSE Sensex ended with a weekly gain of 0.80 per cent or 650 points at 81,086. The Bank Nifty index recorded a weekly gain of around 0.83 per cent and closed at 50,933. In the broad market, the Small-cap and Mid-cap indices outperformed the frontline Indian indices. The Small-cap index recorded a weekly gain of around 3.40 per cent, whereas the Mid-cap index registered a 1.95 per cent rise last week.
Monday’s trade setup
Senior Technical Research Analyst at HDFC Securities, Nagaraj Shetti, discussed the prognosis for the Nifty today, saying, “The underlying trend of Nifty continues to be choppy with a positive bias.” In the foreseeable future, Nifty might rise further higher from here, possibly reaching levels between 25000 and 25100. Call 24650 for immediate assistance.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, provided the following analysis of the Bank Nifty’s forecast for today: “The Bank Nifty opened on a positive note but ran into trend line resistance, which prompted profit booking. As a result, the Bank Nifty ended the day on a negative note at 50,933 levels.”
The index did, however, remain above the 21-DEMA support line, which is close to 50,790. On the weekly scale, the index has created a bullish candle, signifying strength. It is wise to employ a “buy on dips” strategy as long as the index remains over 50,790. The trend line resistance around 51,200 levels continues to be a significant upward obstacle. Maintaining above 51,200 might make it easier to reach the 51,500–51,800 mark.”
US Fed rate reduction rumors
Anticipating that the Indian stock market will continue to show good trends, Chief Investment Officer of Axis Securities PMS Naveen Kulkarni stated, “The US Federal Reserve chairman’s recent remarks regarding interest rates were not surprising.” The market anticipates a reduction in interest rates at the September meeting of the Federal Reserve. How quickly the rates will be lowered is the key question. There are signs that the rate reductions may occur sooner rather than later, particularly in light of the deteriorating jobs figures. Powell does, however, think there is very little possibility that the US economy will go into a recession anytime soon. This suggests that rate reductions would probably be in line with general expectations and that the likelihood of higher rates may be reduced. As a whole, the high the time for interest rates is almost over. However, it doesn’t seem likely that we will see ultra-low interest rates again.
stocks to purchase right now :
Stock market analysts Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, and Sumeet Bagadia, Executive Director at Choice Broking, offered recommendations for shares to purchase today, including Welspun Enterprises, TVS Electronics, Swan Energy, Tata Motors, and Jindal Steel.
Stocks of Sumeet Bagadia
1] Welspun Enterprises: Purchase at ₹601.25, aim at ₹633, and stop loss at ₹580.
Welspun Enterprises is showing strong positive momentum right now, trading at an all-time high of ₹610. The recent breach over the crucial resistance around ₹575 has been supported by significant trading volumes, a crucial technical development that emphasizes the strength of the stock. Given that the discovery suggests that the rising trend might continue, investors should feel optimistic.
2] TVS Electronics: Purchase at ₹445.90, aim for ₹ 469, and halt loss at ₹430.
TVS Electronics’ daily chart analysis indicates a consistent upward trend, which bodes well for the future week. The company has exhibited a noteworthy pattern of higher highs and lower lows. The recent upward trend has effectively broken through the neckline, setting a new weekly high for the stock. The possibility of a significant follow-through upward increase in the stock price is indicated by this breakout.
Stocks of Ganesh Dongre to purchase today
3] Swan Energy: Purchase at ₹700, aim for ₹745, and halt loss at ₹680.
Based on recent short-term trend analysis of the stock, a noteworthy bullish reversal pattern has developed. This technical pattern points to a brief retracement in the stock price, which could go as high as ₹745. At ₹680, the stock is still holding onto a critical support level. There is a growing purchasing opportunity at the current price of ₹700. This means that investors should think about buying the stock at its current price in anticipation of a gain towards the ₹745 target.
4] Tata Motors: Purchase at 1088, aim for 1130, and halt losses at 1065.
A breakout at the price level of Rs. 1088 has been seen on the stock’s daily chart, indicating a possible upward trend. The Relative Strength Index (RSI), which shows growing purchasing enthusiasm, is continuing to rise in tandem with this breakout. With these technical indicators, traders may want to explore entering the stock at a lower price point by purchasing on dips. It is advised to use a stop loss of ₹1065 to control risk. In the following weeks, the strategy’s target price of ₹1130 indicates the possibility of a gain if the stock keeps rising.
5] Jindal Steel: Purchase at ₹960, aim for ₹990, and halt loss at ₹940.
This stock is producing a rounding bottom pattern, which is a bullish signal on the short-term chart. At the moment’s price of ₹960, this configuration suggests an upcoming upward trend. It is advised to use a stop loss of ₹940 in order to manage risk efficiently. In the following weeks, the goal price for this strategy is ₹990. This implies a possible profit as long as the stock maintains its upward trend, supported by bullish technical indicators.
