Eyes on 17,000 - Pre Market Analysis

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

Stocks

The Competition Commission of India (CCI) on Tuesday said it has approved Reliance Retail's acquisition of German firm Metro AG's wholesale operations in India.

NBCC has bagged an order from the Puducherry government for the construction of a medical college and hospital at Karaikal. The order value is at Rs 500 crore.

Cipla has sold itd 51.8% stake in Quality Chemical Industries Limited (CQCIL), Uganda for $25-30 million to Africa Capitalworks SSA 3

Star Health said it has found unauthorised access to its mobile application during its regular assessment process and the company informed the insurance regulator about the same.

Mahindra & Mahindra on Tuesday said its wholly-owned unit Mahindra Bangladesh Pvt Ltd has ceased to exist.

What to Expect Today?

NIFTY opened flat at 17,177 and had one of the most volatile days. Looking into the smaller time frame charts will reveal the quick turns the market made. The index finally closed at 17,043, down by 111 points or 0.65%.

BANK NIFTY opened flat at 39,570. Support was taken at 39,100 and there were volatile moves. BNF closed at 39,411, down by 153 points or 0.39%.

FIN NIFTY opened flat at 17,641. This was the most volatile index, today being the expiry day. FIN NIFTY closed at 17,545, down by 89 points or 0.51%.

IT closed 1.65% lower.

The US markets and the European markets closed well in the green.

The Asian markets are trading higher.

The U.S. Futures and European futures are trading higher.

SGX NIFTY is trading at 17,205 indicating a gap-up opening.

NIFTY has supports at 17,000,, 16,980 and 16,885. We can expect resistances at 17,150, 17,260 and 17,380.

BANK NIFTY has supports at 39,150, 39,000 and 38,600. Resistances are at 39,650, 39,900 and 40,000.

NIFTY has the highest call OI build-up at 17,500. The highest put OI build-up is at 17,000.

BANK NIFTY has the highest call OI build-up at 40,500. The highest put OI build-up is at 39,500.

INDIA VIX stays at 16.2. 

Foreign Institutional Investors net-sold shares worth Rs 3,100  crores. Domestic Institutional Investors net-bought shares worth 2,100 crores.

It would have been a very hard expiry for aggressive option sellers yesterday. It was one of the most volatile days of the financial year. The market gave surprise moves and that too in magnitude yesterday.

India WPI came out better than expected. WPI eased from 4.7% to 3.8%.

US inflation came out in line with the estimates. This gives hope to the investors as Powell was waiting for the data to decide on the magnitude of rate hike. 

Bank Nifty is below 39,500. The highest put OI is at 39,500. Will the trapped sellers there lead to more fall is the question.

The global markets and Sgx Nifty indicate a positive start for the market. It may give confidence to the put sellers. But what happens in the second half is more important.

I will watch 16,980 on the downside in NIFTY. 17,150 can be watched on the upside.

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