Eyes on US Inflation - Pre Market Analysis

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

Stocks

Escorts Kubota board is scheduled to meet today to consider and approve the earnings for the quarter and the year-ended March, and recommend dividend payout.

Jaiprakash Associates has defaulted on loans worth Rs 3,956 crore, including principal and interest amount.

Dalmia Cement Bharat has entered into a Memorandum of Understanding (MoU) with the Assam government to invest close to Rs 4,600 crore in the state which will support the creation of 2,500 jobs.

Bosch board is scheduled to meet today to consider and approve the earnings for the quarter and the year-ended March, and recommend dividend payout.

Nazara Technologies reported an 18% year-on-year (YoY) rise in consolidated net profit for the March quarter to Rs 2.6 crore.

What to Expect Today?

NIFTY opened with a gap-up at 18,317, formed a top below 18,350 and fell. There was weakness in the financial sector and NIFTY had an intraday fall of more than 100 points. NIFTY closed flat at 18,266.

BANK NIFTY opened with a gap-up at 43,449. The dips were bought in the first half. The second half saw heavy selling and BNF closed at 43,198, down by 86 points or 0.2%.

FIN NIFTY opened with a gap-up at 19,364 and broke the day high in the first half. Sellers came in the second half to beat the market down. FIN NIFTY closed at 19,274, down by 29 points or 0.15%.

IT moved up by 0.73%. 

The US markets closed slightly in the red yesterday and the European markets closed flat to red.

The Asian markets are trading lower.

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

SGX NIFTY is trading higher at 18,340.

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

NIFTY has supports at 18,225, 18,150 and 18,100. We can expect resistances at 18,280, 18,330, 18,385 and 18,420.

BANK NIFTY has supports at 43,160, 43,000 and 42,850. Resistances are at 43,330, 43,420, 43,560 and 43,680.

FINNIFTY has supports at 19,240, 19,160 and 19,045. Resistances are at 19,320, 19,400 and 19,480.

NIFTY has the highest call OI build-up at 18,300. The highest put OI build-up is at 18,200.

BANK NIFTY has the highest call OI build-up at 43,500. The highest put OI build-up is at 43,000.

INDIA VIX  is at 12.7.

Foreign Institutional Investors net-bought shares worth Rs 2,000 crores. Domestic Institutional Investors also net-bought shares worth 400 crores.

The sellers made it clear right in the morning that BNF will face immense selling pressure. Still, BNF managed to consolidate for a while at the top. There was a huge fall and the day-low break was completed by 2 PM. 

US inflation will be released at 6 PM IST. Germany also will release their inflation data at 11:30 AM IST.

Overnight players have to be careful as US inflation data will be important this time as always. Fed will have a close watch on it to decide if the recent hike should be the last one or not.

FIIs have been buying continuously in our markets. Do you think we will see a big correction once there is a trigger?

There is selling pressure in NIKKEI now. 

I will watch 18,225 on the downside in NIFTY. 18,330 can be watched on the upside.

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