Another Huge Gap-up. BJP Sweeps Elections! - Pre-Market Analysis Report
What Happened Yesterday?
NIFTY started the day at 20,183 with a gap-up. After opening, there was a sharp jump to the all-time high level. It took resistance there and gave another breakout. Nifty closed at a fresh all-time high of 20,267, up by 134 points or 0.67%.
U.S. markets closed in the green(+0.85%). The European markets also closed in green.
What to Expect Today?
Asian markets are trading mixed.
The U.S. Futures are trading flat.
GIFT NIFTY is trading in huge green at 20,629.
All the factors combined indicate a gap-up opening in the market.
NIFTY has supports at 20,221, 20,160 and 20,035. We can expect resistances at 20,290, 20,340 and 20,400.
FINNIFTY has supports at 20,200, 20,120 and 20,000. We can expect resistances at 20,260, 20,300 and 20,330.
Foreign Institutional Investors net-bought shares worth Rs 1,589 crores. Domestic Institutional Investors net-sold worth Rs 1,448 crores.
INDIA VIX fell to 12.38
After opening near the all-time high on Friday, NIFTY gave a strong breakout and rallied above it. One of the few times, an all-time high is not broken with a gap-up.
And now, as I write, the gap-up indicated by GIFT NIFTY is huge. The elections in multiple states had results coming out.
It indicates that BJP is leading in 4 states of Chhattisgarh, Rajasthan and Madhya Pradesh assembly elections. This is a huge boost for the market ahead of the upcoming 2024 Lok Sabha elections.
And it is a bonus that global markets are also positive.
BJP was expected to win but is winning with a much higher margin than expected. A similar gap-up to today also happened during the 2019 elections but ended with a red-closing.
The previous all-time high will act as good support for the market at 20,225.
Have a watch out for BANK NIFTY, which has not shown as much strength.
We will be modifying our 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!