Asian Markets in the Red. Gap-Down Opening Loading - Pre-Market Analysis Report
What Happened Yesterday?
NIFTY started the day at 20,928 with a gap-up. After opening, there was a good consolidation till noon. From there, it went down till Tuesday’s low by 1:30 PM and bounced back to the day-high. NIFTY closed at another fresh all-time high of 20,937, up 82 points or 0.40%.
U.S. markets closed in the red(-0.19%). The European markets closed in the green.
What to Expect Today?
Asian markets are all trading in the red.
The U.S. Futures are trading slightly in red.
GIFT NIFTY is trading in small red at 21,041.
All the factors combined indicate a flat to gap-down opening in the market.
NIFTY has supports at 20,850, 20,800 and 20,720. We can expect resistances at 20,950, 21,000 and 21,100.
In NIFTY, the highest put OI is at 20,800 and the highest call OI is at 21,000. PCR is 1.06.
Foreign Institutional Investors net-sold shares worth Rs -79.88 crores. Domestic Institutional Investors net-bought worth Rs 1,372 crores.
INDIA VIX has increased to 13.74,.
NIFTY fell to the 20,850 level by 1:30 PM and was expected to consolidate. But from there, the index suddenly found power and bounced back up to the day-high.
BANK NIFTY traded between the levels we discussed - 47,200 and 46,700.
But interestingly, even with NIFTY’s bounce back, call sellers did not get less aggressive.
For the weekly expiry today, there is a high call OI at 20,950 and above. There is good put OI at 20,900 and below. The option sellers are maintaining a neutral position overnight.
With GIFT NIFTY indicating a gap-down opening, if the market needs to be neutral, 20,900 will have to be taken out only slowly. If there is a sudden fall, then profit booking and covering of puts together will pull the index down.
So the expected trading range of 20,850-21,000 remains, with a bit of caution on the put side in the opening phase.
Have a great NIFTY weekly expiry!
We will modify our NIFTY trades and enter new 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!