Can NIFTY Float Above 21k? - Pre-Market Analysis Report


What Happened Yesterday?

NIFTY started the day with a gap-up at an all-time high of 21,55. There was an initial attempt to move up, but the index fell heavily along with BANK NIFTY. A big fall started once the day-low was broken. Including a 200-point fall in the last hour, NIFTY closed at 21,150, down by 303 points or 1.41%.

U.S. markets closed in the red, with a similar last-hour fall(-1.27%). The European markets closed mixed.

What to Expect Today?

Asian markets are trading in the red.

The U.S. Futures are trading in slight green.

GIFT NIFTY is trading in red at 21,114.

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

NIFTY has supports at 21,080, 21,000 and 20,850. We can expect resistances at 21,150, 21,200 and 21,280.

In NIFTY, the highest put OI is at 21,000 and the highest call OI is at 21,500. PCR is 0.47, highly bearish.

Yesterday, Foreign Institutional Investors net-sold shares worth Rs 1,322 crores. Domestic Institutional Investors net-bought shares worth Rs 4,754 crores.

INDIA VIX is flat at 14.45.

There was some hope in the market that yesterday’s gap-up could trigger a larger rally. But BANK NIFTY’s 9:40 AM candle gave bears some confidence. And after the lower trading range of 47,800 was broken, there was no looking back.

If we are looking at NIFTY today, calls sold are more than double that of puts. Traders have been highly aggressive yesterday.

But the aggressiveness will pay off as the market opens with a gap-down. What we will have to look at is the 21k mark, as the put sellers have made it their safe level.

The higher VIX is ensuring that both good option buyers and sellers are making money in the market. So play your risk right, and you can end up on the green side. Make sure no huge risk trades are being taken.

Will be watching the levels of 20,800-21,300 for solid option-selling trades. A tighter level to predict market movements would be 21,000-21,200.

All the best for your trades today!

We will be modifying our 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!

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