Budget Done. Fresh All-Time High Loading? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday at 21,788 with a slight gap-up and fell. Even though there was intraday volatility, no big breakout or breakdown was seen. A trading zone of just 170 points is what we saw with a good base formed at 21,680. NIFTY closed the day at 21,697, down by just 28 points or 0.13%.

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

What to Expect Today?

Asian markets are all trading in the green.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in green at 21,906.

All the factors combined indicate a gap-up opening in the market.

NIFTY has supports at 21,650, 21,580, 21,480 and 21,400. We can expect resistances at 21,750, 21,800, 22,000 and 22,080.

BANKNIFTY has supports at 45,850, 45,660, 45,480 and 45,230. We can expect resistances at 46,000, 46,240, 46,500 and 46,950.

Foreign Institutional Investors net-sold shares worth Rs -1,879 crores. Domestic Institutional Investors net-bought shares worth Rs 872 crores.

INDIA VIX fell 10% to 14.45.

A good trading day yesterday with the market consolidating between technical levels. But the crazy surprise was that it turned out to be one of the least volatile budget days in history!

Option sellers ended up winning with an IV crush, and no single side rally!

Now it looks like the market is left to move independently, with a major domestic and foreign event getting done this week.  

The U.S. markets are trading near an all-time high level, with good earnings and a breakout that is continuing from late November.

Asian markets are also in the green now, with GIFT NIFTY indicating we could trade open above 21,850. As of today, the all-time high is just 2% away.

There is even a world where, if 22,000 is broken with strength, we could see a NIFTY rally to 22,120[all-time high]. 21,480 would again act as a strong support from here.

Two results to watch out for: Tata Motors, and effect of Adani Enterprises result from yesterday. Especially watch out for positive movement in BANKNIFTY.

We will be entering fresh 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!