All-Time High Loading. Gap-Up Expected! - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day flat at 20,108 with a small gap-up of 12 points. After opening, the index fell sharply by over 100 points to 20,015 levels. It took support there and bounced back up to 20,150 levels with volatility. Nifty closed at 20,133, up by 36 points or 0.18%.

BANK NIFTY started the day at 44,711 with a gap-up of 145 points. After opening, the index fell nearly 500 points to 44,250 levels. Then, it moved in a 200-point range for most part of the day. BNF closed at 44,481, down by 84 points or 0.19%.

U.S. markets closed in the green(+1.6%). The European markets closed in green.

What to Expect Today?

Asian markets are trading mostly in the green.

The U.S. Futures are trading positive.

GIFT NIFTY is trading in green at 20,138.

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

NIFTY has supports at 20,044, 20,000 and 19,960. We can expect resistances at 20,160, 20,200 and 20,250.

Foreign Institutional Investors net-bough shares worth Rs 8,147 crores. Domestic Institutional Investors net-sold worth Rs 781 crores.

INDIA VIX is at 12.69.

For the monthly expiry, the market was more disciplined than usual. Even though BANK NIFTY would have given some trouble to expiry traders, NIFTY was comparatively better.

Our expectation that the market would rally towards the all-time high is also turning out to be true. NIFTY is just 90 points away from the all-time high.

The Dow Jones index from the U.S. closed November with an 8.9% gain, breaking its three-month losing streak. It is also just 2-3% away from all-time highs.

Going forward, the 20k level is likely to be defended aggressively by option sellers. With PCR higher than 1 for the upcoming week, NIFTY also has a bullish flavour for now.

The major upward level to watch out for is the all-time high in NIFTY, and 44,800 is BANK NIFTY. If these are broken, it will set the stage for an amazing December for the Indian markets.

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

Make sure that you tune in to The Stock Market Show at 7 PM on our YouTube channel. All the best for the day!