Can NIFTY Break the Double Top? - Pre-Market Analysis Report


What Happened Yesterday?

NIFTY started the day with a gap-down at 22,099. Support was taken at yesterday’s low, and the market bounced back up from there. A double top has now been formed around 22,200. NIFTY closed the day at 22,198, up by 76 points or 0.34%.

U.S. markets closed mixed. The European markets also closed mixed.

What to Expect Today?

Asian markets are trading in the red.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in slight green at 22,225.

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

NIFTY has supports at 22,175, 22,080 and 22,020. We can expect resistances at 22,250, 22,300 and 22,350.

BANKNIFTY has supports at 46,470, 46,240 and 46,000. We can expect resistances at 46,700, 46,950 and 47,200.

In NIFTY, there is high call OI resistance at 22,200. There is a high put OI support at 22,000. PCR is bearish at 0.89.

In BANKNIFTY, there is high call OI resistance at 47,000. There is a high put OI support at 46,500. PCR is bearish at 0.78.

Foreign Institutional Investors net-sold shares worth Rs -1,509 crores. Domestic Institutional Investors net-bought shares worth Rs 2,861.56 crores.

INDIA VIX jumped to 15.72.

The market was in a good consolidation mood yesterday, even while the India VIX increased. The current week is going well for positional and intraday option sellers.

All the action of the week is directed towards tomorrow, at least that is what the options data is showing. VIX increasing, even while consolidation is being seen.

The U.S. GDP numbers will be released tonight. The markets there have also been consolidating around their all-time highs. It is also the monthly expiry day tomorrow, keep that in mind.

If the double top formed in NIFTY yesterday is broken in the morning, we might see a sustained rally. I also expect high volatility in the last 30 minutes, as traders hedge and close their positions before tomorrow’s market.

VIX is high, take safe trades. Do remember today is NOT the BANKNIFTY expiry, it is tomorrow alongside NIFTY. Interestingly, it is the last monthly expiry with NIFTY and BANKNIFTY trading together. From March, the BNF Monthly expiry will be on the last Wednesday of the month.

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

All the best for the day!

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