200+ Point Gap-Down Loading. Time to Invest? - Pre-Market Analysis Report


What Happened Yesterday?

NIFTY started yesterday at 22,365 with a good gap-down and crashed. After a further 100-point fall, support was taken and the index bounced back up to 22,440. But the second half saw a fresh fall, and NIFTY ended the day at 22,272, down by 247 points or 1.1%.

U.S. markets closed in the red. The European markets closed mixed.

What to Expect Today?

Asian markets are trading in the red.

The U.S. Futures is trading in green.

GIFT NIFTY is trading in red at 22,127.

All the factors combined indicate a gap-down opening in the market.

NIFTY has supports at 22,120, 22,000, and 22,860. We can expect resistances at 22,200, 22,280 and 22,350.

BANKNIFTY has supports at 47,600, 47,420 and 47,200. We can expect resistances at 47,800, 48,100 and 48,400.

FINNIFTY has supports at 21,080, 21,000 and 20,800. We can expect resistances at 21,150, 21,280 and 21,380.

NIFTY has the highest call OI resistance at 22,700 and 22,500. The highest put OI support is at 22,200.

BANKNIFTY has the high call OI resistance at 48,000. The highest put OI support is at 47,000.

FINNIFTY has one of the highest call OI resistances at 21,300. The highest put OI support is at 21,000.

Foreign Institutional Investors net-sold shares worth Rs 3,268 crores. Domestic Institutional Investors net-bought shares worth Rs 4,762 crores.

INDIA VIX jumped to 12.46.

With further escalation in the war, the global markets are looking at a fresh round of sell-off. GIFT NIFTY is indicating a 200 point gap down!

FMCG and IT indices are usually resilient in these times, and they are near 200-day EMA lines. Might be a better place to park your money if you are concerned about a further fall.

Interestingly, domestic institutions bought in heavily yesterday. We might see the same trend today.

So generally, I would say it is a good time for anyone who had felt sad they didn't invest when NIFTY reached 22,700. You can start building positions in different tranches!

For today, do watch the first 15-minute candles, then combine the Open High Low level with current supports. Especially watch out for 21,000 support in FINNIFTY.

We are generally happier as VIX is higher, and no put options are sold. I hope you too only have bearish trades open!

We will be continuing our NIFTY trades and BANKNIFTY trades today. You can check out our trades on the marketfeed app or our website!

All the best for the day!

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