Another Trending Friday Loading? Pre Market Analysis

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

Stocks

Adani Enterprises will be moved out of the short-term additional surveillance framework from June 2, according to a circular by the stock exchanges.

Info Edge's subsidiary AIPL has given out a loan of Rs 288 crore to a broker network company 4B Networks. The loan is currently impaired. AIPL has initiated a forensic audit into the affairs of 4B Networks.

AstraZeneca Pharma India Limited has received permission from CDSCO in form CT20 to import for sale and distribution of Tremelimumab (Imjudo) Concentrate in India.

Coal India’s OFS was subscribed 3.46 times on Day 1 and the government has decided to exercise the oversubscription option. Retail investors will bid for shares today (T+1).

Shares of IndusInd Bank and Infosys will be in focus as the companies will go ex-dividend today.

What to Expect Today?

NIFTY opened with a small gap-up at 18,580 and there was a quick down-move. The following up-move got restricted by the same level and the index started falling. NIFTY closed at 18,488, down by 47 points or 0.25%.

BANK NIFTY opened flat at 44,230 and moved down to 44K. The index consolidated around 44,100 for long and had a major fall towards the end. BN closed at 43,790, down by 338 points or 0.77%.

IT closed 0.4% higher.

The US markets shot up yesterday. The European markets  also closed higher.

The Asian markets are trading in the green.

The U.S. Futures and European futures are trading in the green.

SGX NIFTY is trading higher at 18,640.

All the factors combined indicate a gap-up opening.

NIFTY has supports at 18,425, 18,350 and 18,280. We can expect resistances at 18,500,  18,580 and 18,660.

BANK NIFTY has supports at 43,680, 43,475 and 43,265. Resistances are at 44,000, 44,200 and 44,500.

INDIA VIX  is at 11.6.

Foreign Institutional Investors net-sold shares worth Rs 70 crores. Domestic Institutional Investors net-bought shares worth 500 crores.

The global markets rallied with the positive update from the US regarding the debt ceiling issue. However, there was no major move yesterday and the move was delayed by one day.

We were waiting to see if NIFTY crosses 18,580 on the upside to get back to the range. However, the selling pressure was intense yesterday.

It is hard for traders when the fall is sharp. The pace at which BN reversed was shocking to the long players in the market. However, whoever switched their view quickly might have been able to make good profits.

Euro Inflation came out better than the expectations.

Indias Manufacturing PMI came out at 58.2, which is very good but the market did not see any impact apparently.

Do you think this is going to be another trending Friday? 

I will watch 18,400 on the downside in NIFTY. 18,580 can be watched on the upside.

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