Gap-Up Opening Near All-Time High. Breakout Loading? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday at 22,385 with a gap-down and fell. Support was found nearby and the index bounced back 170 points to get near the all-time high zone again. NIFTY ended the day at 22,434, down by 18 points or 0.08%.

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

What to Expect Today?

Asian markets are trading in the green.

The U.S. Futures is trading in green.

GIFT NIFTY is trading in green at 22,600.

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

NIFTY has supports at 22,420, 22,360, and 22,280. We can expect resistances at 22,525, 22,580 and 22,650.

BANKNIFTY has supports at 47,600, 47,420 and 47,200. We can expect resistances at 47,700, 47,800 and 48,000.

NIFTY has the highest call OI resistance at 22,500. One of the highest put OI support is at 22,400 and 22,300.

Foreign Institutional Investors net-sold shares worth Rs 2,213 crores. Domestic Institutional Investors net-bought shares worth Rs 1,102.41 crores.

INDIA VIX fell to 11.37.

NIFTY is indicating a strong gap-up near the all-time high levels once again.

The U.S. markets are also comfortably trading near their all-time highs.

Due to the model code of conduct, big government actions - including rate cuts from RBI are not expected in the next 2 months. So this week’s major event, which is the speech by the RBI Governor tomorrow at 10 AM, would not impact the market much.

When the market opens today, there will be some pressure from the heavy call option sellers at 22,500. But with good premiums in the straddle, there might not be immediate short covering from this level. You can watch out for 22,560 as a good level.

The midcap index is hitting a fresh all-time high after its correction in March. Back in full strength.

As April is beginning, watch out for results from IT stocks. Q4 results of TCS will come out on April 12.

Keep an eye out for Shriram Finance, the latest addition to NIFTY. And SBI which could give a good bounce.

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

All the best for the day!