Deep Red Loading after U.S. Inflation Data. Watch HDFC Bank! - Pre-Market Analysis Report


What Happened Yesterday?

NIFTY started the day flat at 21,666 and went down. It took support at the previous day’s low and bounced back strongly to 21,750. The volatility continued through the day with quick moves between a 140-point zone. NIFTY closed the day at 21,743, up by 127 points or 0.59%.

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

What to Expect Today?

Asian markets are mostly in the red.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in the red at 21,644.

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

NIFTY has supports at 21,690, 21,640, 21,580 and 21,480. We can expect resistances at 21,765, 21,800 and 21,955.

BANKNIFTY has supports at 45,340, 45,230 and 44,900. We can expect resistances at 45,560, 45,700 and 45,840.

In NIFTY, the highest call OI resistance is at 22,000. One of the highest put OI support at 21,500. PCR is bearish at 0.81.

In BANKNIFTY, there is a good call OI resistance at 46,000. There is a good put OI support at 45,000. PCR is neutral at 0.96.

Foreign Institutional Investors net-bought shares worth Rs 273 crores. Domestic Institutional Investors net-bought shares worth Rs 376 crores.

INDIA VIX stayed flat at 15.80.

The biggest risk for the week in the market was India’s inflation data on Monday and the U.S. inflation data yesterday night, as we discussed on Monday.

And those are the biggest contributing factors to bearishness this week. Even though inflation was reduced, the markets fell because they missed targets. NASDAQ fell 1.8% yesterday night, indicating possible weakness in our IT sector as well.

So India is surely to open with a gap-down as we can see from GIFT NIFTY. Now, when we are looking at BANKNIFTY, HDFC Bank is a weak crack. Even when the index gained 1.5% yesterday, the stock kept near its 52-week low. Today with the gap down, there could be a fall below this level.

For the BANKNIFTY expiry today, you can expect volatility. Yesterday’s FINNIFTY expiry was tricky too. Waiting for the first 15 minutes of the market opening will be necessary to understand the initial trend.

Trade safe, and watch out for HDFC Bank!

We will be modifying our 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!

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