Gap-Down Opening in NIFTY. Trend Reversal? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started last week at 23,570 with a gap-up at an all-time high. Over the 4-day trading week, multiple gap-ups were seen with a high created at 23,667. NIFTY ended the week at 23,501, up by 35 points or 0.15%.

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

What to Expect Today?

Asian markets are trading mostly in the red.

The U.S. Futures are trading in the red.

GIFT NIFTY is trading in red at 23,375, down by 96 points.

All the factors combined indicate a gap-down opening in the market.

NIFTY has supports at 23,500, 23,420 and 23,350. We can expect resistances at 23,600 and 23,700.

BANKNIFTY has supports at 51,580, 51,270, 51,000. We can expect resistances at 51,800, 52,000, 52,300. 

NIFTY has call OI resistance at 24,000 and 23,500. High put OI support can be seen at 23,000. PCR is at 0.91, slightly bearish.

BANKNIFTY has call OI resistance at 53,000. High put OI support can be seen at 52,000. PCR is at 1.08, slightly bullish.

Last week, Foreign Institutional Investors net-bought shares worth Rs 9,102 crores. Domestic Institutional Investors net-bought shares worth Rs 9,574 crores.

INDIA VIX is now at 13.18.

It is the monthly expiry week in the market, and NIFTY and BANKNIFTY futures are trading at a discount to the spot.

Last week was yet another week of gap-ups and red candles for NIFTY. But today we will be starting off with a good gap-down.

IT stocks saw a good gap-up and rally on Friday following Accenture’s results in the U.S. We can expect these stocks to fall less than the rest of the market, looking at how Accenture stock closed on Friday.

NIFTY has found it hard to stay above the resistance around the 23,600 zone. As discussed in this video, the index will likely consolidate for a while before another breakout.

There are currently no significant local or international cues to watch.

There are a few stocks I am watching for further breakouts - Berger and Rossari.

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

All the best for the day!