Higher Inflation Data From the US - Pre Market Analysis

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

Stocks

Vodafone Idea's consolidated net loss for the quarter that ended December widened to Rs 7,990 crore. Meanwhile, consolidated revenue increased 9.3% year-on-year to Rs 10,621 crore.

Biocon Ltd on Tuesday posted a net loss of Rs 42 crore for the December quarter as against a profit of Rs 187 crore in the previous year period.

Apollo Hospitals reported a 33% year-on-year decline in its consolidated profit after tax to Rs 162 crore for the December quarter. The company's revenue from operations increased 17% YoY to Rs 4,263 crore.

NMDC reported a net profit of Rs 904 crore for the December quarter, while revenue from operations came in at Rs 3,720 crore during the December quarter. The company has also announced a dividend of Rs 3.75 per equity share

GMR Airports Infra reported a net profit of Rs 191 crore in the three months ended December period, as against a loss of 626 crores a year ago. Revenue from operations surged 29% to Rs 1,766 crore

What to Expect Today?

NIFTY opened with a small gap-up at 17,827 and took support at 17,800. There was a big rally and the index broke 17,900. NIFTY closed at 17,930, up by 159 points or 0.89%.

BANK NIFTY opened with a small gap-up at 41,362 and moved up heavily after taking support at 41,200. The index broke 41,600 but did not touch the major resistance of 41,800. BNF closed at 41,648, up by 366 points or 0.89%.

FIN NIFTY opened with a minor gap–up at 18,462 and rallied after initial negativity. There was a huge call OI build-up at 18,600 and the index touched the level and returned to close at 18,596, up by 167 points or 0.9%.

IT moved up by 1%.

The US markets closed in the red except for NASDAQ. The  European markets closed flat and mixed.

The Asian markets are trading lower.

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

SGX NIFTY is trading at 17,860 indicating a gap-down opening.

NIFTY has supports at 17,900, 17,800 and 17,720. We can expect resistances at 17,970, 18,000 and 18,170.

BANK NIFTY has supports at  41,600, 41,270 and 41,100. Resistances are at 41,800, 42,000 and 42,500.

NIFTY has the highest call OI build-up at 18,200. The highest put OI build-up is at 17,800.

BANK NIFTY has the highest call OI build-up at 42,000. The highest put OI build-up also is at 41,500.

INDIA VIX is at 13.5.

Foreign Institutional Investors net-bought shares worth Rs 1,300 crores. Domestic Institutional Investors net-bought shares worth 200 crores.

NIFTY's day candle is strong and we can see a good up-move in the coming days provided there is a follow-up candle today. However, Sgx Nifty and the global markets are indicating a weak opening. Let us see if there can be an up-move in the second half.

The US inflation data came out yesterday evening. The figure stood at 6.4% against an expected 6.2%. This is slightly higher and led to negativity in the market sentiments.

The US markets were supported by IT stocks, mainly Tesla and NVidia. Our IT sector has been giving up-moves in recent days.

Coming to the local cues, India’s Wholesale Price Inflation was expected at 4.5%. But the figure came out at 4.7%. This is still lower than the previous month, unlike the case of CPI.

UK will release their inflation data today at 12:30 PM IST. How FTSE opens will be important.

Note that both FIIs and DIIs were net buyers yesterday. Whoever switched their view to bullish yesterday may get hit in the opening if there are aggressive positions.

I will watch 17,800 on the downside in NIFTY. 18,000 can be watched on the upside.

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