False Breakdown Trapping Bears? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day flat at 21,732 and shot up. Once the 750 mark was crossed, there was good momentum and the index hit a fresh all-time high. But the highlight was the last 30 minutes fall to the day-low. NIFTY closed at 21,742, up by just 10 points or 0.05%.

U.S. markets have been closed for the New Year. The European markets have also been closed.

What to Expect Today?

Asian markets are trading in the red.

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

GIFT NIFTY is trading in green at 21,850.

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

NIFTY has supports at 21,680, 21,600 and 21,500. We can expect resistances at 21,750, 21,800 and 21,840.

FINNIFTY has supports at 21,380, 21,300 and 21,250. We can expect resistances at 21,470, 21,560 and 21,630.

BANKNIFTY has supports at 48,200, 48,080 and 47,800. We can expect resistances at 48,350, 48,500 and 48,800.

In NIFTY, the highest put OI is at 21,700 and the highest call OI is at 22,000. PCR is bullish at 1.01.

In FINNIFTY, the highest put OI is at 21,300 and one of the highest call OI is at 21,600. PCR is bearish at 0.78.

In BANKNIFTY, the highest put OI is at 48,000 and one of the highest call OI is at 48,500. PCR is bearish at 0.83.

Foreign Institutional Investors net-sold shares worth Rs 855 crores. Domestic Institutional Investors net-bought shares worth Rs 410 crores.

INDIA VIX is at 14.68.

Markets topped off yesterday around 3 PM and then fell sharply in the last 30 minutes. BANK NIFTY fell 380 points.

NIFTY has been trading in a wide zone, with a strong base at yesterday’s low of 21,680. This has been the constant support since last Thursday.

Yesterday’s fall would not be of high impact, lowest volume day in the last 2 weeks in the futures and cash market. And international markets have been closed which gave no specific cues for FIIs.

All stocks including IT are still showing signs of strength.

As the month begins, a lot of data will start becoming available. Keep watching auto stocks.

Tomorrow, Fed minutes from the last meeting will be published in the U.S.

For FINNIFTY expiry today, 21-300-21,550 would be a good first range to watch out for. 

All the best for your trades today!

Have a watch out for the market regaining some strength, and if bears get trapped! 

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!