Bearish Engulfing Candle?  Pre Market Analysis

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

Stocks

Shares of RIL, India's largest company by m-cap, will be in focus today as the company will report its fourth quarter results. The growth in topline and bottomline in the quarter ended March is likely to be muted.

HCL Tech has reported a consolidated net profit of Rs 3,983 crore for the quarter ended March. This is an increase of 11% from Rs 3,593 crore clocked in the corresponding period of last year.

Finolex Cables will set up a plant at Urse facility, Pune to produce Optical Fibre Preforms as well as expand on its Fibre draw capacity.

Oriental Hotels reported a revenue of Rs 115.56 crore in the fourth quarter of FY23, a 69% increase. PAT came in at Rs 17.79 crore.

Adani Power has entered into a long-term power supply agreement with MPSEZ Utilities for a capacity of 360 MW to be supplied from the company’s 4,620 MW power plant at Mundra for 15 years.

What to Expect Today?

NIFTY opened with a small gap-up at 17,639 yesterday and faced resistance at the zone around 17,700. A sell-off followed and the index consolidated around the low. NIFTY had a range-bound second half and closed flat at 17,624.

BANK NIFTY opened with a minor gap at 42,218 and moved up. There was selling pressure till 2 PM and the index made a recovery and closed at 42,269, up by 115 points or 0.27%.

IT moved down by 0.2%.

The US markets closed lower whereas the European markets closed mixed with DAX closing 0.6% down and FTSE closing flat.

The Asian markets are trading lower now.

The U.S. Futures and European futures are trading flat.

SGX NIFTY is trading flat at 17,670.

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

NIFTY has supports at 17,575, 17,425 and 17,320. We can expect resistances at 17,690, 17,750 and 17,835.

BANK NIFTY has supports at 42,000, 41,800 and 41,590.  Resistances are at 42,435, 42,500 and 42,600.

INDIA VIX is at 11.9.

Foreign Institutional Investors net-sold shares worth Rs 1,200 crores. Domestic Institutional Investors net-bought shares worth 800 crores.

Since Tesla shares fell heavily after the results, the US markets saw negativity.

Germany PPI came out better than expected. HCL Tech results were announced and there was a dip in the profits. However, the results were better than street estimates.

After days of buying and staying neutral, FIIs have net sold shares for more than 1,000 crores yesterday. We need FII inflow to support the market to go above 18K.

Reliance will announce its results today. Strong results are expected and it is highly likely that it will be announced during market hours. Be careful as RIL is the largest heavyweight. ICICI will announce their results tomorrow.

UK and Euro Manufacturing PMI and US Services PMI also will be released today.

It is weekly close today and a bearish engulfing candle is under formation. Bulls would want to see at least 100 points of up-move today.

There are so many hurdles on the upside for long-players. What they need is consolidation here or a minor pull-back rather than a sudden reversal to the downside.

Japan’s inflation slowed down. Let us see if Nikkei can move higher and positively impact the price action of our market.

I will watch 17,570 on the downside in NIFTY. 17,700 can be watched on the upside.

Eid Wishes in Advance to All!

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