18K Crossed. Can the Level Be Protected? - Pre Market Analysis

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

Stocks

Tata Steel reported a nearly 90 per cent drop in consolidated net profit to Rs 1,297 crore for the July-September quarter of 2023-23, dragged by higher expenses.

Bharti Airtel posted an 89 per cent year-on-year rise in consolidated net profit for September quarter to Rs 2,145 crore, as higher revenue per user, more data consumption, and expanded 4G base boosted realisations. Airtel's total revenue rose nearly 22 per cent year-on-year to Rs 34,527 crore during the just-ended quarter.

Larsen & Toubro reported a 26 per cent rise in consolidated net Profit After Tax (PAT) at Rs 2,819.20 crore for the quarter ended September on the back of higher revenue from operations.

Adani Power said that the timeline for completion of the Rs 7,017-crore deal to acquire thermal power assets of DB Power Ltd has been extended by one month till November 30, 2022.

Glenmark Pharmaceuticals said its US-based unit has launched Fingolimod capsules, used to treat multiple sclerosis, in the American market.

What to Expect? 

NIFTY opened with a gap-up at 17,910 and moved higher steadily. The day ended with a final breakout that took 18K.  NIFTY closed at 18,012, up by 225 points or 1.27%.

BANK NIFTY opened with a gap-up at 41,271. It was a volatile day for BNF. The index closed at 41,308, up by 317 points or 0.77%.

IT moved up by 1.45%.

The US markets closed in the red and the European markets closed higher.

The Asian markets are trading higher.

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

SGX NIFTY is trading at 18,170. Let us see if we can get a gap-up despite DOW moving down.

NIFTY has supports at 18,000, 17,950 and 17,900. We can expect resistances at 18,100, 18,200 and 18,300.

BANK NIFTY has supports at 41,200, 41,000 and 40,850. Resistances are at 41,350, 41,840 and 42,000.

NIFTY has the highest call OI build-up at 18,500. The highest put OI build-up is at 17,800. 

BANK NIFTY has the highest call OI build-up at 41,500 and the largest put OI build-up is at 41,000.

Foreign Institutional Investors net-bought shares worth Rs 4,000 crores. Domestic Institutional Investors net-sold shares worth 1,000 crores.

INDIA VIX is at 15.8.

And finally NIFTY has broken 18K. The level was crossed intraday and not with a gap-up. This gives hope to the bulls. At the same time, the US markets did not show momentum yesterday. 

Euro CPI came out at 10.7%. The expected was around 10.3% only. There was a dip in the markets after the news. 

The US Manufacturing PMI data will be released tonight. There is OPEC meeting too. The markets will be volatile ahead of the Fed interest rate decision coming out tomorrow.

Hong Kong’s economic data recorded the worst contraction since 2020. GDP dropped by 4.5% in the previous quarter. The projections for economic growth also have worsened. However, HANG SENG is trading 3% in the green!

Let us see if the positivity in the Asian markets can beat the slightly negative close in the US markets and NIFTY can continue the rally.

It is FINNIFTY expiry today. Be careful towards the end. Let us watch 18,475, 18,390 and 18,300 on the downside. It looks like we are witnessing a good breakout. 18,700 is the major level on the upside.

Regarding NIFTY, I will be closely watching 18,000 on the downside and 18,100 on the upside.

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