India Inflation Drops. US CPI Tonight - Pre Market Analysis

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

Stocks

Tata Motors said it would explore the possibility of partial divestment of its holding in subsidiary Tata Technologies Ltd through an initial public offering route.

ICICI Bank said it has raised Rs 5,000 crore through bonds to fund business growth. The bonds are redeemable at the end of 7 years. There are no special rights or privileges attached to the bonds.

V-Guard Industries has signed definitive agreements for acquiring 100 percent stake in Sunflame Enterprises (SEPL) for Rs 660 crore, on a cash-free, debt-free basis.

GR Infraprojects has entered into share purchase agreement with Lokesh Builders for transfer of entire shares being held by the company in its subsidiary GR Highways Investment Manager for a sum of Rs 15 crore.

Godrej Agrovet has sold 3.92 acres of land in Tamil Nadu for Rs 71.36 crore in two separate deals.

What to Expect?  

NIFTY opened with a gap-down at 18,415 and saw a sudden up-move. The index faced resistance around 18,500 and there was a small intraday correction. There was a sudden 3 PM up-move and NIFTY closed at 18,497, absolutely flat.

BANK NIFTY opened with a gap-down at 43,525 and shot up. The index indicated further rally by consolidating on top. But there was no up-move and the index closed at 43,709, up by 75 points or 0.15%.

IT fell by 0.4%.

The US markets rallied but the European markets closed in the red.

The Asian markets are trading in the green.

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

SGX NIFTY is trading at 18,640 indicating a gap-up opening.

NIFTY has supports at 18,430, 18,350 and 18,300. We can expect resistances at 18,520, 18,570, 18,630 and 18,665.

BANK NIFTY has supports at 43,600, 43,330, 43,000 and 42,880. Resistances are at 43,770, 43,850 and 44,000.

FINNIFTY has supports at 19,270, 19,170 and 19,090. Resistances are at 19,320, 19,370 and 19,480.

NIFTY has the highest call OI build-up at 18,600. The highest put OI build-up is at 18,400.

BANK NIFTY has the highest call OI build-up at 43,700. The highest put OI build-up is at 43,500. 

Foreign Institutional Investors net-sold shares worth Rs 150 crores. Domestic Institutional Investors net-bought shares worth 700 crores.

INDIA VIX is at 13.3.

The US markets rallied yesterday ahead of inflation data release. DOW JONES has once again closed above 34,000. This will help support our markets.

It is FIN NIFTY expiry and option sellers will be worried if there will be sudden moves like yesterday. OI says 19,200 will be a major support. The highest call OI is at 19,500. The zone of 19,170-19,370 is crucial.

India’s inflation data surprised everyone. The figure came out at 5.9%, way better than the estimates. Also, inflation is now within the tolerance zone as it is below 6%. Net direct tax collection went up by 24%. 

However, industrial output declined by 4% and this was not at all expected. This is the worst performance inn the last two years.

US Inflation data will be out tonight. It is expected that the figure will be out around 7.3%. Core CPI also has to be followed along with CPI. We have the Fed interest rate decision tomorrow.

I will be closely watching 18,570 on the upside and 18,410 on the downside in NIFTY.

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