Gap-up Opening in NIFTY! BANK NIFTY Monthly Expiry Day - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday at 22,447 with a gap-up and fell. The index then traded in a 65-point range until the day’s closing. NIFTY ended the day at 22,368, up by 32 points or 0.14%.

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

What to Expect Today?

Asian markets are trading in the green.

The U.S. Futures is trading flat.

GIFT NIFTY is trading in green at 22,448.

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

NIFTY has supports at 22,280, 22,200 and 22,000. We can expect resistances at 22,440, 22,510 and 22,600.

BANKNIFTY has supports at 47,800, 47,600 and 47,420. We can expect resistances at 48,080, 48,160 and 48,300.

NIFTY has a high call OI resistance at 22,400 and 22,500. There is a high put OI support at 22,300. PCR is at 1.

BANKNIFTY has a high call OI resistance at 48,000 and 48,500. There is a high put OI support at 48,000. PCR is at 0.89.

On Friday, Foreign Institutional Investors net-sold shares worth Rs 3,004 crores. Domestic Institutional Investors net-bought shares worth Rs 2,918 crores.

INDIA VIX fell 20% to 10.19, the second-lowest closing in its history.

NIFTY has gotten stuck at a Fibonacci retracement level from its recent fall. It is facing good resistance around the 22,450 mark.

The bullishness in the market still exists. As the major results season in India is also done, it looks like a consolidation before a big move.

The crash in India VIX could indicate institutional players already planning for election results.

Now, it is the monthly expiry for BANKNIFTY today. When we are looking at the options data, it is showing heavy straddle buildup at the current price of 48,000. A combined premium of 300+ points is being seen.

This means that the index could absorb up to 48,000 ± 300 moves. But beyond that, it would be a big danger.

Do not be fooled into thinking that the VIX crash will immediately lower volatility. There is still a risk of volatility, especially for expiry traders.

Make sure that you watch out for BANKNIFTY and its levels today, even if you are trading in NIFTY! 

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

All the best for the day!