Further Up-move or Profit-booking? - Pre Market Analysis

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

Stocks

Tech Mahindra announced it will be hiring 3,000 people in Gujarat over the next five years. The company's current staff strength in Gujarat could not be immediately ascertained.

Tata Motors  has received an order for 200 electric buses which will be deployed in 

Jammu and Srinagar. The Mumbai-based auto major has won the tender of 200 electric buses floated by Jammu Smart City.

ICICI Lombard General Insurance reported a 32.2 per cent growth in net profit at Rs 591 crore for the September quarter, boosted by a tax reversal of Rs 128 crore.

Polycab India reported a 36.72 per cent growth in consolidated profit during the September quarter at Rs 270.45 crore. The company's profit stood at Rs 197.80 during the corresponding quarter of 2021-22.

Polycab India reported a 36.72 per cent growth in consolidated profit during the September quarter at Rs 270.45 crore. The company's profit stood at Rs 197.80 during the corresponding quarter of 2021-22.

What to Expect? 

NIFTY opened with a gap-up at 17,448 and rallied. The index took resistance at 17,530 and started moving down respecting a trendline. NIFTY closed at 17,487, up by 175 points or 1%.

BANK NIFTY opened with a gap-up at 40,291 and moved towards 40,500. However, there was consolidation and BNF closed at 40,319, up by 398 points or 1%.

IT moved up by 1.1%.

The US markets and the European markets moved higher.

The Asian markets are mixed.

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

SGX NIFTY is trading at 17,520 indicating a flat to gap-up opening. 

NIFTY has supports at 17,450, 17,350 and 17,230 . We can expect resistances at 17,530, 17,620 and 17,690.

BANK NIFTY has supports at 40,250, 40,150 and 40,000. Resistances are at 40,430, 40,530 and 40,650.

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 and the largest put OI build-up is at 39,500.

Foreign Institutional Investors net-sold shares worth Rs 150 crores. Domestic Institutional Investors net-bought shares worth 2100 crores.

INDIA VIX dropped by 5% to 17.5.

The US industrial production data showed a significant bounce, beating expectations. There was contraction in August but the September data indicated a 0.4% rise. The US markets shot up again.

However, you can see that the Chinese markets have not reacted positively to the lift in the global sentiments. Though NIKKEI is trading higher, the Chinese markets are down. 

You can see that FINNIFTY respects major levels when it is nearing expiry. It looked like adjustments were made in the banking stocks to keep FINNIFTY under control. This means BNF would be replaced in the future by FINNIFTY for options trading as BNF reaches higher values.

See where resistance was taken yesterday in NIFTY. We discussed the importance of 17,530 yesterday . That was the point from where the first bounce was taken post the formation of high on 13th September.  Now that 17,435 is cleared, we have to see a close above 17,530 for further up-move. This can lead to a reversal that has the potential to cross 18K.

UK will release the inflation data today at 11:30 AM. You can watch FTSE futures at that time along with DOW futures to know if there is a big impact. If not, wait to see how the European markets perform after opening at 12:30 PM.

Reliance gave a big break-out yesterday after forming a W-pattern. Let us watch 2423 and 2486.

I will be closely watching 17,530. 17,450 and 17,620 can act as range-deciding levels.

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