Gap Down Opening Loading. Will Yesterday's Low be Respected? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day flat at 19,678 and fell sharply to 19,600. It then moved up by 130 points to 19,730 levels to make a double top. After the volatility, NIFTY came back to the opening levels and closed at 19,674, up by 0.3 points or 0.00%.

BANK NIFTY started the day flat at 44,615. The index gave multiple swings of more than 300 points, including showing bullishness around noon. BANK NIFTY closed at 44,766, up by 154 points or 0.35%.

U.S. markets closed recovered and closed in the green on Friday. The European markets closed in the red.

What to Expect Today?

Asian markets are trading in the red.

The U.S. Futures are trading in the red(-0.33%).

GIFT NIFTY is trading in the red at 19,656.

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

NIFTY has supports at 19,640, 19,560, 19,500. We can expect resistances at 19,780, 19,870 and 19,950.

BANK NIFTY has supports at 44,600, 44,520 and 44,280. Resistances are at 44,800, 44,900 and 45,100.

NIFTY has the highest call OI build-up at 19,800. The highest put OI buildup is at 19,500. PCR is bearish at 0.81.

BANK NIFTY has the highest call OI build-up at 45,000. The highest put OI build-up is at 44,000, 44,500 and 44,700. PCR is bearish at 0.81.

FINNIFTY has the highest call OI build-up at 20,000. The highest put OI build-up is at 19,600. PCR is bearish at 0.84.

Foreign Institutional Investors net-sold shares worth Rs 2,333 crores. Domestic Institutional Investors net-bought worth Rs 1,579 crores.

INDIA VIX increased slightly to 10.90.

BAJAJ Twins gained on the news that Bajaj Finance is going to raise ₹8,200 crores. If not for their rally, NIFTY would have ended in the red yesterday.

The fall in HDFC Bank had been paused for yesterday, and we saw consolidation. Today's trend in the stock will be crucial for the FINNIFTY expiry.

Again, Friday’s indication was that this week might continue to be bearish. And the current strategies on the marketfeed app are also expecting the same.

There was no good put selling yesterday as we expected, and PCR is still bearish.

Yesterday’s candle was a perfect indecision candle in NIFTY and green candles in BANK NIFTY and FINNIFTY. I will be watching the low and high of yesterday’s Doji candle to understand a trend in the market.

And if the market stabilises and moves up from here, will be selling some puts to follow the trend!

For the FINNIFTY expiry, watch out for a strong support at 19,600 with a resistance being expected at 19,800!

Follow along with Smart Money (NIFTY) and Piggy Bank (BANK NIFTY) trades for the week. You can check out the marketfeed app or our website for trades!

Make sure that you tune in to The Stock Market Show at 7 PM on our YouTube channel. All the best for the day!