GIFT NIFTY to Open Flat! Budget Starts at 11 AM - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday at 21,504 with a slight gap-down. It took support immediately and started a good rally. A good breakout occurred once 21,580 was broken, and consolidation was near the day-high after noon.  NIFTY closed the day at 21,725, up by 203 points or 0.95%.

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

What to Expect Today?

Asian markets are trading mixed.

The U.S. Futures are trading in green.

GIFT NIFTY is trading in green at 21,824.

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

NIFTY has supports at 21,650, 21,580, 21,480 and 21,400. We can expect resistances at 21,750, 21,800 and 22,000.

BANKNIFTY has supports at 45,850, 45,660, 45,480 and 45,230. We can expect resistances at 46,000, 46,240, 46,500 and 46,950.

In NIFTY, one of the highest call OIs is at 22,000. The highest put OI is at 21,500. PCR is bearish at 0.77.

Both FIIs and DIIs turned net buyers yesterday. Foreign Institutional Investors net-bought shares worth Rs 1,660 crores. Domestic Institutional Investors net-bought shares worth Rs 2,542 crores.

INDIA VIX stayed flat at 16.04.

HDFC Bank and Reliance kept the market on an upward trend yesterday. And the morning strength in BANKNIFTY was crazy. A move of 1,000 points in around an hour of trading! And a breakout above the previous day’s high did help it reach the 46k mark in no time, as we expected.

The U.S. Federal Reserve announced no interest rate hikes yesterday, as expected. But traders were disappointed as Jerome Powell said rate cuts in March were unlikely. NASDAQ and Dow Jones went into the red.

But as Asian markets are mixed, and with a strong domestic event happening today, GIFT NIFTY has stayed in the green.

There are heavy bear and bull opinions in the market ahead of the budget. I would stick to a conservative approach and go with the trend once it is formed.

The Budget Presentation will start at 11 AM. Option buyers are hoping for a crazy single-side rally, and option sellers are hoping for an IV crush. 

If you are not an active trader and don’t have time to keep your eyes glued to the screen, it would be best to avoid trading today. Otherwise, just stay true to the good technical levels that we have. 

All the best for your trading journey today!

We will be modifying our NIFTY and BANK 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!