Double Top Reversal? Pre Market Analysis

Here are some of the major updates that could move the markets today:

Stocks

Zydus Life's arm Zydus Animal Health and Investments to acquire 6.5% stake of Rising Sun Holdings in Mylab.

HDFC Life Insurance said it has received a demand notice of more than Rs 942 crore for non-payment of GST.

Rail Vikas Nigam Ltd emerged as the lowest bidder from Maharashtra Metro Rail Corporation for design and construction of elevated metro viaduct.

Dr Reddy’s Laboratories announced its entry into the trade generics business in India with the launch of its new dedicated division ‘RGenX’.

Graasim's Board approved the issue of non-convertible debentures on private placement basis, for an amount not exceeding Rs 2,000 crore, in one or more tranches.

What to Expect Today?

NIFTY opened with a small gap-down at 18,746 on Friday. It was a range-bound day with 18,650 as bottom and 18,750 as high. NF closed at 18,665, down by 106 points or 0.56%.

BANK NIFTY opened flat at 43,673 and had a nearly flat day. Though there was an up-moev, the sellers were strong and BN closed at 43,623, down by 102 points or 0.23%.

IT closed 0.89% in the red.

The US markets and the European markets closed deep in the red.

The Asian markets are trading in the red except for NIKKEI.

The U.S. Futures and European futures are trading in the green.

SGX NIFTY is trading lower at 18,810.

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

NIFTY has supports at 18,550, 18,500 and 18,420 We can expect resistances at 18,6585, 18,750 and 18,850.

BANK NIFTY has supports at 43,500, 43,350 and 43,265. Resistances are at 43,680, 44,000 and 44,100.

FIN NIFTY has supports at 19,500, 19,470 and 19,370. We can expect resistances at 19,540, 19,600 and 19,650.

NIFTY has the highest call OI build-up at 18,800. The highest put OI build-up is at 18,000. PCR is 0.8.

BANK NIFTY has the highest call OI build-up at 44,000. The highest put OI build-up is at 443,500. PCR is 0.85.

FIN NIFTY has the highest call OI build-up at 19,600. The highest put OI build-up is at 19,500. PCR is 0.8.

INDIA VIX  is at 11.2.

Foreign Institutional Investors net-sold shares worth Rs 300 crores. Domestic Institutional Investors net-sold shares worth 700 crores.

Though there were news regarding coup in Russia spreading, the global markets have ignored those.

Let us watch 43,350 on the downside in BN. That is a major level for positional players. 44,000-44,170 zone is crucial. Hope you remember the significance of 44,170 in the hourly chart. 

Nifty is stronger than BN. However, 18,550 is a major level to protect for the bulls. 18,900, being just above the All-time high can be watched.

European Central Bank Chair Lagarde will speak tonight. Let us see if the US markets react to it.

Nikkei is trading higher against the sentiments in the global markets. Will NF be able to follow Nikkei?

As we discussed in the Dalal Street Week Ahead, the weekly candle is red. The major swing point of 18,685 on the day-chart has been broken. Is it going to be a double-top reversal?

I will watch 18,550 on the downside in NIFTY. 18,750 can be watched on the upside.

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