47,300 Support in BANKNIFTY. Jerome Powell Speech Tonight - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day slightly in red at 22,389 and fell. Support was taken around 22,280 and then the index bounced back up. Even after touching a fresh day-high, NIFTY fell back down after 1:30 PM. NIFTY closed the day at 22,356, down by 49 points or 0.22%.

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

What to Expect Today?

Asian markets are trading mixed.

The U.S. Futures are flat.

GIFT NIFTY is trading in slight red at 22,426.

All the factors combined indicate a flat opening in the market.

NIFTY has supports at 22,360, 22,280 and 22,175. We can expect resistances at 22,430, 22,500 and 22,600.

BANKNIFTY has supports at 47,420, 47,200, 46,950 and 46,700. We can expect resistances at 47,600, 47,800 and 47,900.

In NIFTY, there is high call OI resistance at 22,400. There is a high put OI support at 22,200. PCR is bullish at 1.15.

In BANKNIFTY, there is high call OI resistance at 47,500. There is a high put OI support at 47,000 and 47,300. PCR is bullish at 1.27.

Foreign Institutional Investors net-bought shares worth Rs 574 crores. Domestic Institutional Investors net-bought shares worth Rs 1,834 crores.

INDIA VIX fell to 14.38.

U.S. markets fell yesterday along with large tech stocks. The selling pressure also came in as profit booking across the index.

BANKNIFTY has a high put OI buildup at 47,300. This causes some concern, because of the simple question of why traders are taking such risks on an expiry day.

Our markets are expected to open flat and potentially be very volatile like the FINNIFTY expiry yesterday. Aggressive traders lost money as the index shot up from day-low.

Federal Reserve Chairman Jerome Powell will appear today before both branches of Congress this week for his semi-annual monetary policy report. He is expected to talk about the plan on interest rate cuts. The effects of this would hit the market tomorrow. 

Would not be surprised if we see the market consolidating today. The only risk being 47,300 put sellers level in BANKNIFTY.

It is the BANKNIFTY expiry today. Trade safe according to the levels shared!

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

All the best for the day!