17K or 18K? NIFTY to Form a Crucial Day Candle - Pre Market Analysis

Here are some of the major updates that could move the markets today:

Stocks

Infosys has completed the acquisition of Europe-based life sciences consulting and technology firm BASE life science, which will further expands Infosys footprint in the Nordics region and will bring domain experts with commercial, medical, digital marketing, clinical, regulatory, and quality knowhow.

Hero MotoCorp reported a 1.92 per cent increase in total sales at 4,62,608 units in August 2022. The company had sold 4,53,879 units in the year-ago period.

UPL said Mike Frank has been elevated as the chief executive officer (CEO). Frank will also be a member of the UPL Crop Protection Board of Directors. Frank will also be a member of the UPL Crop Protection Board of Directors, which manages all CP assets outside of India.

Olectra Greentech said its board has approved a plan to raise up to Rs 800 crore through issuance of securities. The company is looking to raise the amount through issuance of equity shares and/or through sale of securities convertible into equity shares.

Indian Bank has revised the marginal cost of funds-based lending rates (MCLR) by 0.10 per cent to 7.75 per cent across tenors from Saturday, which will make most of the consumer loans costlier. It has also revised the lending rates benchmarked on treasury bills.

What to Expect? 

NIFTY opened with a gap-down at 17,523 yesterday and rallied heavily. There was profit booking and NIFTY moved in a downtrend till 2 PM. The last hour buying led NIFTY to close at 17,543, down by 217 points or 1.22%.

BANK NIFTY opened with a gap-down at 38,965 and crossed 39,500. The high was made at 10:30 and there was heavy selling. However, BNF closed at 39,301, down by 235 points or 0.6%.

IT dropped by 2%.

The US markets closed in the green except for NASDAQ. The European markets closed lower again.

The Asian markets are trading in the red. The U.S. Futures and European futures are trading lower.

SGX NIFTY is trading at 17,575 indicating a flat to gap-up opening.

NIFTY has supports at 17,500, 17,470 and 17,400. We can expect resistances at 17,590, 17,620, 17,690 and 17,800.

BANK NIFTY has supports at 39,000, 38,760 and 38,500. Resistances are at 39,670, 40,000 and 40,300.

Foreign Institutional Investors net sold shares worth Rs 2300 crores. Domestic Institutional Investors net bought shares worth 1000 crores.

INDIA VIX  is at 19.6.

Though there was a gap-down opening, NIFTY closed with a green candle. However, there is a long upper shadow. This has to be covered for the bulls to keep the dream of all-time high alive.

The US markets are consolidating near the lows, though there was some buying in the second half. There is no proper support from the global markets. 

The Jobs report will be out today. Let us closely watch the data as it can impact the upcoming interest rate decision.

Premium was high yesterday. Let us see if there is higher premium for the new weekly series also. 

The local cues are good right now. The GDP data though it missed the estimates, was a double-digit number. Yes, there was a base effect as well. The export data showed a rise of 20%. The imports also rose. GST collections have increased by 28% to 1.44 lac cr compared to the previous year.

Manufacturing PMI hit an 8-month high at 56 and the Auto sales data was good.

I will be watching 17,470 on the downside and 17,700 on the upside.

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