Another Gap-Up Opening. NIFTY Expiry Day Volatility? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday at 24,292 with a gap-up and fell. It was a tight trading range of under 100 points. NIFTY finally ended at the day-high, and closed at 24,286, up by 162 points or 0.67%.

U.S. markets closed in green. The European markets closed in the green.

What to Expect Today?

Asian markets are trading in the green.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in green at 24,456, up by 63 points.

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

NIFTY has supports at 24,220, 24,050 and 23,910. We can expect resistances at 24,300, 24,400 and 24,500.

BANKNIFTY has supports at 53,000, 52,800 and 52,620. We can expect resistances at 53,230, 53,500 and 53,600. 

NIFTY has the highest call OI resistance at 24,500 and 24,300. The highest put OI support at 24,200 and 24,300. PCR is at 1.13, bullish.

Foreign Institutional Investors net-bought shares worth Rs 5,483 crores. Domestic Institutional Investors net-sold shares worth Rs -924 crores.

INDIA VIX fell to 13.20.

HDFC Bank and Bank Nifty both opened with a gap-up yesterday. But while HDFC Bank saw profit booking, others pushed up the index to close above 53k for the first time.

Expiry traders would still have found it easy, as the index traded in a tight range after 9:30 AM.

For the NIFTY traders, the 24,300 level would have been a good resistance. If the market opens above it and sustains, we will have to expect some short-covering move in the first 30 minutes.

Finance stocks are also bullish, so expect them to fire.

The U.S. markets will be closed tonight for the 4th of July holiday. Might see lower FII involvement, and pure retail play today.

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

All the best for the day!