Inflation Data in Focus. Will Bears Attack? - Pre-Market Analysis Report


What Happened Yesterday?

NIFTY started the day flat at 21,747 and was volatile. Around 11 AM, the previous day’s low was broken but the index bounced back up from there. Resistance was found near the 21,800 level. NIFTY closed the day at 21,782, up by 64 points or 0.3%.

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

What to Expect Today?

Asian markets are mostly closed for the Chinese New Year.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in the green at 21,918.

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

NIFTY has supports at 21,750, 21,640 and 21,580. We can expect resistances at 21,800, 21,955 and 22,080.

BANKNIFTY has supports at 45,560, 45,340, 45,230. We can expect resistances at 46,000, 46,240, 46,500 and 46,950.

In NIFTY, the highest call OI resistance at 22,000. The highest put OI support at 21,500. PCR is neutral at 0.78.

In BANKNIFTY, there is good call OI resistance at 46,000. There is a good put OI support at 45,000. PCR is bearish at 0.85.

Last week, Foreign Institutional Investors net-sold shares worth Rs 5,872 crores. Domestic Institutional Investors net-bought shares worth Rs 5,326 crores.

INDIA VIX stayed flat at 15.4.

NIFTY has found a nice space between 21,600 and 22,100. A 500-point zone is where it has been trading for many weeks. Consolidation with volatility is the current trend.

BANK NIFTY and FINNIFTY are continuing to trade near their 200-EMA. This is despite SBI hitting all-time highs 3 days in a row. HDFC Bank continues to be beaten down.

Reliance and the IT index also remain strong. HDFCBank, however, is very weak.

Today, India’s inflation data will come out. The RBI Governor pointed out that the major reason for no interest rate cut is that inflation is still far away from their 4% level. Watch out for this data today.

I feel the bulls are waiting for the right opportunity. The market is still just 1-2% away from the all-time highs. And the breakout could happen towards the end of the week, or earlier if the inflation data is satisfactory 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!

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