Nifty 50 Bank Nifty Overview -Will Nifty breach 25,000 level today
Market Overview - 1st August 2024
GIFT Nifty suggests a positive opening; US markets show gains, while Asian markets are mixed following the Fed's hints about potential rate cuts. On Wednesday, the S&P 500 and Nasdaq recorded their largest daily percentage gains since February 22, and the Dow also rose. This boost came as chip stocks surged and the Federal Reserve decided to keep U.S. interest rates steady. However, the Fed hinted at the possibility of rate cuts in September if inflation eases.
Company Earnings Reports
Tata Steel's Q1 EBITDA per ton in India met expectations, and its European business reported the smallest EBITDA loss per ton since Q2 FY23. Bank of Baroda's Q1 net interest income was as expected, but its net profit was slightly lower. Coal India's Q1 profit and revenue aligned with forecasts. GE T&D India saw its revenue, EBITDA margin, and profit after tax reach their highest levels in several quarters. Infosys is dealing with a Rs 32,400 crore GST demand notice.
Earnings reports are due today from ITC, Sun Pharma, Tata Motors, Adani Enterprises, and Adani Ports, as well as Zomato, Dabur, Emami, and Escorts. Pricol, Fino Payments, and IIFL Securities posted strong Q1 earnings, while KRBL and Relaxo reported weaker results.
Nifty 50 Technical Analysis
Nifty has been encountering resistance near the 25,000 mark. Experts believe that a decisive move above this key level is essential for the index to sustain its upward momentum. If Nifty breaks through this level, the next target could be around 25,500. In the meantime, it's important to keep an eye on the crucial support level at 24,400.
The key support levels based on pivot points are 24,780.05, 24,702.80, and 24,529.70. For resistance, the levels are 24,953.15, 25,049.00, and 25,222.10. The index has formed a bullish candle with a large body and small wicks on both sides, indicating strong buying interest.
Bank Nifty Technical Analysis
For the Bank Nifty, the support levels based on pivot points are 51,186.98, 50,874.67, and 50,176.97.
The resistance levels are 51,884.68, 52,270.07, and 52,967.77. The index created a notable bullish candle and ended the day above the 51,200 level.
Options Data
Based on weekly options data, the 25,500 strike, with a combined open interest of 1.38 crore, has the highest call open interest and is expected to be a key resistance level for Nifty in the short term. The 25,200 strike, with 1.01 crore combined open interest, follows as the next important level. Additionally, there was significant call writing at the 23,100 strike for Nifty.
For Nifty Put options, the 24,500 strike has the highest open interest at 1.64 crore, making it a key support level. The next important level is the 24,600 strike, which has 87 lakh in open interest.
Market Sentiment
The Nifty Put-Call Ratio (PCR), which shows market sentiment, is currently at 1.18. A PCR above 0.7, especially if it goes above 1, usually signals a bullish market outlook. Conversely, a PCR below 0.7 or closer to 0.5 often suggests a bearish sentiment.
The Nifty max pain point is at the 24,900 strike price. This is the level where option sellers are expected to experience the least loss when the options expire, according to the max pain theory.
Volatility
India VIX, which measures market volatility, is staying in the 12-14 range. Compared to the previous session, it closed at 13.85, up by 2.87 percent.
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