In the End, a Fall! Pre Market Analysis

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

Stocks

Private investment firm Bain Capital has sold partial stake in private lender Axis Bank via block deal on Thursday, while many domestic and foreign funds lapped up the shares.

HCLTech and Microsoft expand collaboration to boost innovation and adoption of generative AI with Microsoft’s Azure OpenAI service.

Natco Pharma announced its closure of inspection and received establishment inspection report from USFDA for its drug formulations manufacturing facility at Vizag.

RIL is in talks with foreign-currency loan lenders to raise up to $2 billion to fund the ongoing expansion of its oil-to-telecom businesses, Bloomberg reported.

Wipro announced the opening of its new 5G-Def-i innovation center in Austin, Texas, underscoring the company’s commitment to helping clients realize the benefits of 5G technology through safer, more sustainable, and compliant products and services.

What to Expect Today?

NIFTY opened with a gap-up at 18,778, faced rejection and fell big. 18,700 also was broken and the index closed at 18,688, down by 68 points or 0.36%.

BANK NIFTY opened flat at 44,070 and had a big fall. The day low was 43,400 and that is a 600 points fall. BN closed at 43,444, down by 544 points or 1.24%.

IT closed 0.54% lower.

The US markets rallied yesterday The European markets closed mixed.

The Asian markets are trading higher.

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

SGX NIFTY is trading higher at 18,800..

All the factors combined indicate a gap-up opening.

NIFTY has supports at 18,640, 18,555 and 18,500. We can expect resistances at 18,730, 18,770 and 18,800.

BANK NIFTY has supports at 43,265, 43,000 and 42,850. Resistances are at 43,680, 44,000 and 44,100.

INDIA VIX  is at 11.1.

Foreign Institutional Investors net-bought shares worth Rs 3,000 crores. Domestic Institutional Investors net-sold shares worth 300 crores.

See how VIX is staying the same despite the fall. Premiums are lower due to the lower VIX.

The US markets rallied heavily yesterday. As you know, the real reaction to a major cue comes the following day in Wall Street.

Note that FIIs net bought yesterday! 

Let us see how the European markets open. There is no big positivity that can be seen in the European futures inspite of the rally seen in the US markets.

Looking at the Day-chart, BN has broken the major swing points. However, it has been a long consolidation at the top. It could be a shake-out and rise. 

As today is weekly close, price action will be important.

I will watch 18,640 on the downside in NIFTY. 18,730 can be watched on the upside.

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