Can NIFTY Sustain Above 21,500? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day with a good gap-up at 21,655 and fell to 21,600. After bouncing from here, the market shot up to 21,720 and consolidated for 4 hours. After 2 PM, there was a quick fall to the day low. NIFTY closed at 21,544, up by 31 points or 0.15%.

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

What to Expect Today?

Asian markets are mostly trading in the red, except Japan’s Nikkei which hit its highest since 1990.

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

GIFT NIFTY is trading in red at 21,573.

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

NIFTY has supports at 21,500, 21,400 and 21,340. We can expect resistances at 21,600, 21,680 and 21,750.

BANKNIFTY has supports at 47,200, 46,950 and 46,740. We can expect resistances at 47,420, 47,600 and 47,800.

In NIFTY, the highest put OI is at 21,500 and the highest call OI is at 21,700. PCR is bearish at 0.65.

In BANKNIFTY, the highest put OI is at 47,000 and one of the highest call OI is at 47,500. PCR is bearish at 0.47.

Foreign Institutional Investors net-bought shares worth Rs 104 crores. Domestic Institutional Investors net-sold shares worth Rs 990 crores.

INDIA VIX decreased to 13.26.

NIFTY has taken support from around 21,500 for the 3rd time in the last week. All three of these had been strong red candles but kept on taking the base at this level.

Even though the U.S. market closed with weakness yesterday, Asian markets are in slight red to flat, despite the fall in the U.S. This is largely powered by the Japanese market reaching 34-year high levels.

Hence, there is a chance for the market to still take support at 21,500 even today. Even with all of this, NIFTY is still down by just 300 points from the all-time high.

For the BANKNIFTY expiry today, 47,200 is a super important mid-level support. The upper and lower bands I will be watching out for are 47,000-47,500. This is confirmed by the highest call and put OI also.

Hope you have a great BNF expiry trading day!

We will be modifying our NIFTY and BANKNIFTY 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!