GIFT NIFTY at 21,400. Another Red Day? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day with a big gap-down at 21,674 and tried moving up. But from the high of the first candle, there was another 280-point fall in the market. The final hour saw NIFTY dip below 21,600. NIFTY ended the day at 21,571, down by 461 points or 2.09%.

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

What to Expect Today?

Asian markets are trading in the green.

The U.S. Futures are trading flat.

However, GIFT NIFTY is trading in the red again at 22,409.

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

NIFTY has supports at 22,480, 22,400 and 22,340. We can expect resistances at 21,600, 21,680 and 21,750.

In NIFTY, one of the highest put OIs is at 21,500 and one of the highest call OIs is at 21,700. PCR is bullish at 0.54.

Foreign Institutional Investors net-sold shares worth Rs -10,578.13 crores. Domestic Institutional Investors net-bought shares worth Rs 4,006 crores.

INDIA VIX increased to 15.01.

The crazy fall in the market, sponsored by HDFC Bank is what we saw. This one stock alone pulled down NIFTY by 250 points and BANK NIFTY by 1600+ points.

The entire move was results-driven, with FIIs selling shares in the cash market worth nearly Rs 10,000 crores just in a day.

Today is the NIFTY expiry, and there seems to be some fear remaining. Just looking at GIFT NIFTY, it is showing another 200-point gap-down today.

India VIX has gone higher as we hoped, but the BANK NIFTY expiry was tough. Need the higher VIX to continue so that high premiums can contribute to higher ROIs in the upcoming weeks.

There is also, not much of a market-wide selling. IT stocks gained yesterday, and the Midcap index fell only 1%.

The 22,000 level is blown out of the park, so the next important support level 21,480. Hoping there will not be a crazy gap-down at 21,400 as indicated by SGX. Do watch 21,600 on the upper side.

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

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