As investors gear up for the trading session on Monday, August 19, 2024, the benchmark equity indices are expected to kick off the week on a positive note following a strong rally on Friday. The GIFT Nifty futures are indicating a likely gap-up opening of over 100 points on the NSE Nifty 50 index, with futures quoting around 24,710 levels at 07:00 AM.
The positive sentiment in the market can be attributed to a range breakout, steady domestic inflows into the stock market, and the absence of negative surprises on the corporate earnings front. Vinod Nair, Head of Research at Geojit Financial Services, highlighted that the market will closely monitor the US Federal Reserve chair’s speech at the Jackson Hole Symposium and the FOMC minutes, as any signs of economic improvement may impact the rates trajectory.
Looking at global cues, the US stocks ended higher on Friday, with the Dow Jones, S&P 500, and NASDAQ all edging up by 0.2 percent. The US 10-year bond yield remained around 3.90 percent, while international Gold futures surged to 2,540 levels. WTI Crude Oil futures hovered around $75 per barrel. In Asia, Nikkei was down 0.3 percent, while Kospi and Taiwan quoted flat.
Market experts have shared their trading strategies for Nifty and Bank Nifty for Monday, August 19, 2024:
Rajesh Bhosale, Equity Technical Analyst at Angel One, noted that Nifty has shown a range breakout on the hourly charts and closed above the 20-Day EMA, indicating further upside potential. He suggested that levels of 24,700 and 24,850 could serve as immediate hurdles, with a possibility of retesting 25,000 levels and beyond if global markets remain supportive.
Om Mehra, Technical Analyst at SAMCO Securities, highlighted that Nifty is maintaining above the 20 DMA and 50 percent Fibonacci retracement level, with a potential short-term move towards 24,700. For Bank Nifty, a move above 50,750 could lead to gains towards 51,200 – 51,500.
Dhupesh Dhameja, Technical Analyst at SAMCO Securities, pointed out the bullish momentum in Nifty and Bank Nifty, suggesting a buy-on-dips strategy as long as key support levels are held.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, emphasized the importance of Nifty staying above 24,350 for continued bullish momentum, with resistance levels at 24,690 and 24,960. For Bank Nifty, a move above 50,810 could drive gains towards 51,200-51,500.
Rupak De, Senior Technical Analyst at LKP Securities, mentioned that Nifty may consolidate within the 24,300 – 24,550 range, with a decisive move above 24,550 triggering an upward move. A buy-on-dips strategy is recommended unless Nifty falls below 24,300.
In terms of fund flow activity, FIIs have been net buyers in the cash segment, while DIIs continue to show strong buying interest. In the derivatives segment, FIIs have been active in index futures, with a long-short ratio of 1:1 indicating bullish sentiment.
Lastly, the article also provides updates on stocks in the F&O ban period and new IPOs set to open for subscription on Monday, including Interarch Building Products, Brace Port Logistics, Forcas Studio, Solve Plastic Products, and Broach Lifecare Hospital SME IPOs.
Overall, the trading guide for Monday, August 19, 2024, presents a comprehensive overview of the market outlook, trading strategies, fund flow activity, and primary market updates, offering valuable insights for investors and traders as they navigate the trading session ahead.