Stock Setup For Today: Sluggish signals from global markets, Gift Nifty also flat

Trade Setup For Today: Global markets are not seeing any special action before the speech of Fed Chairman Jerome Powell in Jackson Hole. US market saw a decline yesterday. Gift Nifty is at a flat level.

For the last several sessions, Nifty has been working in a range, but this range is getting even more limited now. Yesterday (Thursday) Nifty worked in a range of 80 points throughout the day. Yesterday Nifty crossed 24,800. It also crossed 24,850 on an intraday basis but could not sustain. With yesterday's closing in the green mark, Nifty has been in a bullish trend for 6 consecutive days.

Nifty Bank closed slightly below 51,000 with a gain of about 300 points yesterday. However, this index has not seen consistent momentum. ICICI Bank and HDFC Bank have handled this index to some extent. Other stocks also supported this rise. 9 out of 12 Nifty Bank stocks closed in the green.

On a weekly basis, both the indices are up about 1% so far this week and are set to close with gains for the second consecutive week. Nifty is now just 200 points away from 25,000. In such a situation, support from banks will be needed to break the record high of 25,078.

Signals from global markets

After reaching a new peak, the US market closed down on the strength of tech stocks. The Dow Jones closed down 178 points yesterday, the S&P 500 index 50 points and the Nasdaq 300 points. Bond yields rose ahead of Jerome Powell's Jackson Hole speech. The dollar index stood at 101.39 with the biggest gain in the last one month. However, the swap market is now clear that the Fed will adopt a soft stance on policy in the next meeting.

Asian markets opened with weakness today. Inflation in Japan stood at 2.8% during the month of July. Today the Nikkei index is almost flat in the market here. South Korea's Kospi index is trading with a decline of about half a percent. China's Shanghai Composite and Hong Kong's Hang Sang index are showing signs of weakness.

FIIs - DIIs figures

Buying was seen in the cash market on Thursday by institutional investors. Yesterday, block deals were seen in many stocks including PNB Housing Finance, Kalyan Jewellers, Eris Lifesciences, NIIT, Eureka Forbes, which may have an impact on these figures. FIIs made a net purchase of ₹ 1,372 crore in the cash market yesterday. At the same time, DIIs made a net purchase of ₹ 2,972 crore in the cash market on this day. These figures are provisional.

Outlook for Nifty for today

Chandan Taparia of Motilal Oswal Finance Services said that Nifty has formed a bullish candle on the weekly chart. But, the candlestick looks bearish on the daily chart. If Nifty maintains 24,700, then the index can go up to the level of 25,000 - 25,100. For this, there will be support at the level of 24,700 and then 24,550. He advised traders to buy a bull call spread of one lot at 24,800. Also sell one lot at the strike of 25,000.

Rupak Dey of LKP Securities says that Nifty is now moving towards the upper Bollinger band. The index is at an important level near the short-term moving average. As long as Nifty remains above 24,650, the sentiment will be in favor of the bulls. In such a situation, the index can go up to 25,000.

Outlook for Nifty Bank for today

Om Mehra of SAMCO Securities says that Nifty Bank has formed a double bottom on the daily chart, which is a sign of a possible trend reversal. There is support for Nifty Bank at the level of 50,650. There is a small resistance at the level of 51,250. After crossing this level, the index can go to the zone of 51,550 - 51,700. Om Mehra has advised to buy Nifty Bank on decline.

Nifty Bank that the index was seen consolidating in a limited range of 200 points yesterday as well. This range is between 50,800 - 51,000. Buying has been seen in select banking stocks and the index has managed to close above 50 DEMA. The index now needs to remain above 50,750 to go up to 51,250. After this, after crossing 51,500, this level will have to be maintained. There is support for Nifty Bank at the level of 50,750. After this, the next support is also at the level of 50,500.

Shares included in F&O ban

Chambal Fertilisers, IEX and RBL Bank have once again joined the F&O ban. Balrampur Chini is out of this list. Apart from this, Aarti Industries, Aditya Biral Fashion, Birlasoft, GNFC, Granules India, Hindustan Copper, India Cements, LIC Housing Finance, SUN TV, Pirama Enterprises and NALOC are included in the F&O ban.

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