Friday Breakout or Consolidation for NIFTY? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday with a big gap-up at 23,480 and moved down. It could not sustain at the all-time high levels and fell back to Thursday’s trading zone. After the initial fall, markets mostly traded in a 60-point zone. NIFTY ended the day at 23,398, up by 76 points or 0.33%.

U.S. markets closed mixed. The European markets closed in the green.

What to Expect Today?

Asian markets are trading mostly in the red.

The U.S. Futures are trading flat.

GIFT NIFTY is trading flat at 23,420, up by 15 points.

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

NIFTY has supports at 23,350, 23,200, 23,100 and 23,000. We can expect resistances at 23,400 and 23,500.

BANKNIFTY has supports at 49,750, 49,680, 49,500 and 49,300. We can expect resistances at 50,000, 50,100 and 50,250. 

Foreign Institutional Investors net-sold shares worth Rs -3,033 crores. Domestic Institutional Investors net-sold shares worth Rs -553 crores.

INDIA VIX cooled down to 13.48.

Markets have been giving gap-ups back to back since June 5. Even today, we can expect this trend to continue. In the last 4 gap-ups, we have had red candles in the day.

Usually, Friday is the day where options players let the market rally. So hoping to see some moves to 23,500 and then see some consolidation!

Do remember that NIFTY is trading outside a very bullish channel, and eventually it would come back and continue inside the older trendlines. 

Keep an eye out for HDFC Bank and Reliance today.

We will be entering fresh NIFTY trades and continuing our BANKNIFTY trades today. You can check out our marketfeed app or our website for new trades!

All the best for the day!