Another Gap-up! 18,000 Soon? - Pre Market Analysis

Rakesh Jhunjhunwala has left us! He will remain India's Big Bull forever!

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

Stocks

Life Insurance Corporation has reported a multi-fold jump in net profit at Rs 682.89 crore from the paltry Rs 2.94 crore a year ago. The financial powerhouse that manages assets in excess of Rs 41 lakh crore had gone public in early May with a Rs 20,500 crore share sale.

The Fair trade regulator Competition Commission of India (CCI) has approved the merger proposal of HDFC Bank and its parent HDFC. The proposed combination envisages the merger of HDFC Investments and HDFC Holdings with HDFC Ltd in the first step and subsequently, the merger of HDFC Ltd into HDFC Bank.

ONGC reported a tripling of net profit in the June quarter to Rs 15,205.85 crore as it earned record prices before the government slapped a tax on windfall profits arising from a global rally in energy rates.

Hero MotoCorp reported over two-fold rise in consolidated profit after tax at Rs 585.58 crore in the first quarter ended June 30, 2022, riding on higher sales. The company had posted a consolidated profit after tax of Rs 256.46 crore in the same period last fiscal.

Info Edge has invested Rs 300 crore in its subsidiary Startup Investments. Info Edge holds 100 percent stake in Startup Investments (Holding) which is a holding and investment company.

What to Expect? 

NIFTY opened flat at 17,649 and gave a dip to 17,600 on Friday. The bulls came in and the index rallied. 17,720 which was the PDH proved to be a resistance and NIFTY closed at 17,698, up by 39 points or 0.22%.

BANK NIFTY opened flat at 38,884 and moved lower initially. The rally took the index higher and BNF crossed 39000. BANK NIFTY closed at 39,042, up by 162 points or 0.42%.

IT moved down by 1.15%.

The US markets and the  European markets closed higher.

The Asian markets are trading in the green now. The U.S. Futures and the European futures are trading flat.

SGX NIFTY is trading at 17,831 indicating a gap-up opening.

NIFTY has immediate supports at 17,660, 17,600 and 17,550. We can expect resistances at 17,720, 17,790, 17,900 and 18,000.

BANK NIFTY has supports at 38,950, 38,790, 38,650 and 38,500. Resistances are at 39,200, 39,350 and 39,500.

NIFTY has the highest call OI build-up at 18,000. The highest put OI build-up is at 17,400.

BANK NIFTY has the highest call OI build-up at 39,000 and the largest put OI build-up also is at 39,000 making it a straddle.

Foreign Institutional Investors net bought shares worth Rs 3,000 crores. Domestic Institutional Investors also net sold shares worth 800 crores.

INDIA VIX  dropped further by 4% to 17.6.

India’s CPI came out as expected at 6.7%. This is a 5-month low and the previous figure was 7% and the estimate was 6.8%. UK GDP data has shown contraction. But a 0.2% negative growth was expected and the figure came out at -0.1%. The previous figure was 0.8% growth. Their industrial data was much better than expected and our industrial production data came out at 12.3% against an expected 10.7%.

As mentioned in the Dalal Street report yesterday, crude oil prices are continuing the down-move, trading now at $93. The previous swing point in the day-chart is being broken now. This along with FII buying has enhanced the positive sentiments in our market.

We were watching IT stocks on Friday as discussed. Look at that correction trying to fill the gap. Let us see if the gap gets filled.

We know that it is a continuous 8 week-rally. Still, the short sellers are hesitant to see the strength. The US markets had opened with a gap-down yesterday. But look at how resilient they were.

India’s WPI will be out today. It is expected at 14.2%. However, we need not give much importance as CPI is already out.

I will be watching 17,600 on the downside and 17,900 on the upside.

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