Global Markets Reopen. Will Nifty Follow Or Take Its Own Path? Pre Market Analysis

Here are some of the major updates that could move the markets today:

Stocks

Punjab & Sind Bank board will meet on Friday to consider and approve raising Rs 250 crore through equity and debt instruments.

IndoStar Capital Finance has appointed Vinod Kumar Panicker as chief financial officer effective Monday. Prior to joining the company, Panicker was the CFO of Muthoot Capital Services for 9 years.

Capri Global board will meet to consider, discuss and decide the quantum and pricing of rights issue of shares.

Sikko Industries shares will trade ex-dividend for its interim dividend of Rs 0.15 per share. The company’s shares ended higher by over 2% at Rs 104.85 per share on Tuesday.

Religare Enterprises subsidiary Religare Finvest Ltd is hopeful of restarting its business operation in 2023 following the company's proposal of Rs 2,300 crore one time settlement (OTS) finding favour from most of the lenders.

What to Expect?  

NIFTY opened with a gap-up at 18,082 yesterday. There was a quick fall and the index broke 18K. However, there was a strong bounce and Nifty closed at 18,132, up by 118 points or 0.65%.

BANK NIFTY opened with a gap-up at 42,829 and had a second half recovery. The index closed at 42,859, up by 229 points or 0.54%.

IT moved up by 0.88%.

The US markets closed mostly in the red, except for Dow and the European markets closed higher. FTSE remained closed. 

The Asian markets are trading mixed, mostly in the red.

The U.S. Futures and European futures are trading flat.

SGX NIFTY is trading at 18,065 indicating a gap-down opening.

NIFTY has supports at 18,110, 18,085, 18,030 and 17,970. We can expect resistances at 18,150, 18,175, 18,250 and 18,320.

BANK NIFTY has supports at 42,750, 42,550, 42,400 and 42,080. Resistances are at 42,920, 43,000 and 43,370.

NIFTY has the highest call OI build-up at 18,200. The highest put OI build-up is at 18,000.

BANK NIFTY has the highest call OI build-up at 44,000. The highest put OI build-up is at 42,000.

Foreign Institutional Investors net-sold shares worth Rs 900 crores. Domestic Institutional Investors net-bought shares worth 600 crores.

INDIA VIX is at 15.3.

And there was a follow-up on the upside though it looked like another down-move in the morning when the markets fell rather quickly after the gap-up opening. Just after the 15 minutes candle closed below 18K, there was buying. With some intraday profit booking at 2:15, the markets rallied again.

However, the cues are negative now from the west. The US markets closed in the red though the blue chip companies advanced marginally. It is the IT stocks which are taking the markets down. Many of the global markets opened after the holidays. FTSE will reopen today.

Keep an eye on Metals that rallied heavily. The index moved up by 4.2%. I doubt if IT will be able to continue the up-move considering the heavy fall in NASDAQ we saw yesterday.

RBI report said that banks will have to increase the Bank deposit rates as credit demand has surged. As you know, the interest rates were hiked aggressively.

Will we follow the global markets is the question. We had fallen much more than our peers. Nikkei is trading lower mostly because of the factory output data that came out lower than the estimate. However, most of the other markets also are trading lower.

It is better to wait for the initial price action to enter a trade unless you are a conservative non-directional trader considering the mixed cues.

I will watch 18,025 on the downside and 18,175 on the upside in NIFTY.

Follow us on the marketfeed app’s Signal section to get real-time updates from the market. All the best for the day!