Another Gap-up. When will Profit Booking Start? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started Saturday with a gap-up at 21,420 and fell. The moves were small as traders were inactive for the special trading day. After consolidating in a tight zone, NIFTY closed the day at 22,378, up by 39 points or 0.18%.

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

What to Expect Today?

Asian markets are trading mixed.

The U.S. Futures are in slight red.

GIFT NIFTY is trading in green at 22,,527.

All the factors combined indicate a gap-up 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 47,200, 46,950 and 46,700. We can expect resistances at 47,420, 47,600 and 47,800.

Foreign Institutional Investors net-sold shares worth Rs 81 crores. Domestic Institutional Investors net-sold shares worth Rs 44 crores.

INDIA VIX fell to 14.99.

On Friday, we had a great breakout in the market with NIFTY moving up to 22,350. There was more than a 2.5% move in BANKNIFTY and it is just one more move away from the all-time high.

The next logical level at 22,500 for NIFTY, could be hit today. But I am watching out for profit booking once the market touches this level.

If it is crossed and sustained on a daily candle, then 22,800 would be the next level to watch for. 

Reliance has been testing the ₹3,000 mark for 3 days. Let’s see if it can move up. SBI is also near its all-time high level.

The market is waiting for the right opportunity for profit booking. Historically, it has been a volatile month! The question is will it be today, or will the market survive for another day!

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!