BANKNIFTY Expiry. Calm or Crazy? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday flat at 21,784 and could not break the 800 mark. From there, it was a steady fall until the closing minutes. The index lost nearly half the gains of Monday’s rally.  NIFTY closed the day at 21,522, down by 215 points or 0.99%.

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

What to Expect Today?

Asian markets are trading in the red.

The U.S. Futures are trading flat.

GIFT NIFTY is trading flat at 21,628.

All the factors combined indicate a flat to small gap-down opening in the market.

NIFTY has supports at 21,48, 21,400, 21,340 and 21,210. We can expect resistances at 21,580, 21,690 and 21,800.

BANKNIFTY has supports at 45,230, 45,100, 44,900 and 44,600. We can expect resistances at 45,660, 45,850 and 46,000.

In NIFTY, one of the highest call OIs is at 21,700. One of the highest put OIs is at 21,000. PCR is bearish at 0.65.

In BANKNIFTY, one of the highest call OIs is at 46,000. One of the highest put OIs is at 45,000. PCR is bearish at 0.72.

Foreign Institutional Investors net-sold shares worth Rs -1970 crores. Domestic Institutional Investors net-bought shares worth Rs 1,002 crores.

INDIA VIX increased to 16.10.

NIFTY gave away half of the gains from Monday’s rally and settled back around 21,500 for the day. The volatility in the market has kept on increasing and VIX closed at the highest level since last March.

The U.S. Federal Reserve is expected to announce there will be no interest rate hikes tonight, after the Monetary Policy Committee meeting. But traders are looking at indications of when the rate cuts might come. US tech stocks cooled down, while Dow Jones index closed at another all-time high.

And tomorrow is the budget day for us. Expecting big movements for both of these reasons. 

As for the Bank Nifty expiry, option sellers seem to be playing more aggressively on the call side. The index showed good strength yesterday. Would be interesting to see if there is some strength in the first half itself. A breakout above yesterday’s high could take it to the 46k mark today!

We will be modifying our NIFTY and BANK NIFTY trades today. You can check out our trades on the 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!