Against the Tide or Surrender? - Pre Market Analysis

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

Stocks

Coal India said its coal production in September 2022 increased by 12.3 per cent to 45.7 million tonnes, and offtake rose by 1.1 per cent to 48.9 million tonnes compared to same period last month. However, these are provisional numbers.

Zydus Lifesciences said it has received approval from the US health regulator to market Sildenafil for oral suspension, used to treat pulmonary hypertension, in the American market. The company has received approval from the US Food and Drug Administration (USFDA) to market the product.

LIC Housing Finance hiked its lending rates by 0.50 per cent, hours after a similar move by the RBI. The company increased the LIC Housing Prime Lending Rate by 0.50 per cent. LHPLR is the benchmark rate to which the interest rate on LIC HFL's loans are linked.

APL Apollo Tubes registered the highest quarterly sales volume of 6.02 lakh tonnes in Q2FY23, up 41 per cent on a yearly basis. The sales volume for the first half of FY23 was 10.25 lakh tonnes compared to 8 lakh tonnes in the same period last year.

Dilip Buildcon received a provisional completion certificate for rehabilitation and up gradation from two to four lane for Varanasi - Dagamagpur section of the National Highway-7 on EPC mode in Uttar Pradesh. With this, the authority declared the project fit for entry into commercial operations.

What to Expect? 

NIFTY opened flat at 16,808 and moved up on Friday. It was a proper up-trending day with NIFTY breaking 17K. NIFTY closed at 17,094, up by 276 points or 1.94%.

BANK NIFTY opened flat at 37,667 and moved up. The index even outperformed and crossed 38,500. BNF closed at 38,632, up by 984 points or 2.6%.

IT closed 0.6% in the green.

The US markets fell heavily and the European markets closed higher.

The Asian markets are mostly shut. NIKKEI is trading higher.

The U.S. Futures trading flat and the European futures are mixed with DAX futures trading much lower.

SGX NIFTY is trading at 16,940  indicating a gap-down opening. 

NIFTY has supports at 16,930, 16,800 and 16,750. We can expect resistances at 17,000, 17,180 and 17,310.

BANK NIFTY has supports at 38,500, 38,200 and 38,000. Resistances are at 39,000, 39,500 and 40,000.

NIFTY has the highest call OI build-up at 17,500. The highest put OI build-up is at 16,700.

BANK NIFTY has the highest call OI build-up at 39,000 and the largest put OI build-up is at 37,500.

Foreign Institutional Investors net sold shares worth Rs 1600 crores. Domestic Institutional Investors net bought shares worth 3200 crores.

INDIA VIX  is at 20.

Our markets had a very strong close on Friday. Look at the day-candle; it is a bullish engulfing candle. The weekly candle also is a reversal candle, a hammer. But the US markets spoilt the sentiments as they had closed nearly 2% lower. 

The Chinese markets remain shut on account of National Holidays. They will be closed for one whole week. Since the European markets had closed in the green on Friday, we will have to see the impact of the Dow weakness in the opening at 12:30.

RBI announced the interest rate decision on Friday. There was a hike of 50 basis points. RBI retained the inflation forecast for the year at 6.7% but reduced the GDP forecast from 7.2% to 7%.

The government reduced windfall taxes further. Let us watch the oil companies. The telecom companies also can be focused on as the Prime MInister has launched 5G.

Auto Sales data indicated another surge in sales. 

This is going to be a shorter week as the markets are closed on Wednesday on account of Dussehra. 

I will be watching 16,750 on the downside and 17,300 on the upside this week. 17,180 can be watched as immediate resistance.

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