Can NIFTY Hold onto 19,500 Support? - Pre-Market Analysis Report
What Happened Yesterday?
NIFTY started the day flat at 19,820. After forming a big red candle at opening, the index tried to move up but faced resistance at 19,840 once again. Then it gave a sharp fall of nearly 170 points (forming lower lows along the way) and mostly consolidated after 12 PM. Nifty closed at 19,671, down by 140 points or 0.71%.
BANK NIFTY started the day flat at 44,404. The index fell over 500 points after 10 AM and consolidated for the rest of the day. BANK NIFTY closed at 43,888, down by 520 points or 1.17%.
U.S. markets closed flat in the red. The European markets were also in red.
What to Expect Today?
Asian markets are trading in the red.
The U.S. Futures are trading slightly in red(-0.15%).
GIFT NIFTY is trading in red at 19,570.
All the factors combined indicate a gap-down opening in the market.
NIFTY has supports at 19,640, 19,580 and 19,490. We can expect resistances at 19,720 and 19,790.
BANK NIFTY has supports at 43,840, 43,680 and 43,480. Resistances are at 44,000, 44,150 and 44,280.
NIFTY has highest calls sold at 19,800. The highest puts are sold at 19,600. PCR is overly bearish at 0.67.
Foreign Institutional Investors net-sold shares worth Rs 1,831 crores. Domestic Institutional Investors net-bought worth Rs 1,469 crores.
INDIA VIX is at 10.96.
In Bank NIFTY yesterday, quick moves posed a threat to traders. Even though PCR was indicating bearishness, there was good put-selling in the index. Once the market started going down, these sellers had to run for cover and pulled down the index even further.
Bajaj Finance fell over 2% after announcing its results yesterday. The market found out a reason to push it down.
Only Pharma stocks showed strength in the market yesterday.
NIFTY has some key supports that you can watch for. But Bank Nifty looks to be a bit worrying at the moment. It has also broken a long-term trendline from June 2022, which is not a good sign.
NIFTY will have to stay afloat above 19,500 to have some hope today. Let us see how the market opens and performs. Trade safe for the NIFTY expiry today!
Follow along with Smart Money (NIFTY) and Piggy Bank (BANK NIFTY) trades for the week. You can check out the marketfeed app or our website for trades!
Make sure that you tune in to The Stock Market Show at 7 PM on our YouTube channel. All the best for the day!