Inflation Data, Wipro Results And More - Pre Market Analysis

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

Stocks

Tata Consultancy Services announced a solution which will aid in their roll-outs and usage of CBDC. The Tata Group company has enhanced its blockchain solutions platform Quartz to enable central and commercial banks to support the entire lifecycle of Central Bank Digital Currency (CBDC).

Infosys said its president Ravi Kumar S has resigned from his post. The company did not give any reason for the move which comes just days ahead of its second quarter earnings announcement. In his role as president, Ravi Kumar S led the Infosys Global Services Organisation across all industry segments.

Power Grid Corporation said it has acquired 100 per cent equity in a special purpose vehicle (SPV) to build an inter-state transmission project for eastern and northeastern regions. The SPV was acquired for an aggregate value of about Rs 7.04 crore.

Adani Enteprises has been granted unified licence for access services, which enables it to provide all telecom services in the country, according to two official sources. Adani Group entered the telecom sector after buying spectrum in the recent auction.

Dr Reddy's Laboratories announced that the World Economic Forum has recognised its largest manufacturing facility in Bachupally, here, as part of its Global Lighthouse Network.

What to Expect? 

NIFTY opened flat at 17,262 against the expectation of a gap-down and consolidated. There was a sudden fall towards the close and NIFTY ended the day at 16,984, down by 257 points or 1.49%.

BANK NIFTY opened flat at 39,130 and had a volatile choppy day. The last hour-fall took the index below 39K and BNF closed at 38,712, down by 381 points or 0.97%.

IT fell by 1.99%.

The US markets closed mostly in the red but Dow could close slightly in the green. The European markets moved down again.

The Asian markets are trading lower now. NIKKEI is flat.

The U.S. Futures are trading in the green and the European futures are trading lower.

SGX NIFTY is trading at 16,990 indicating a flat opening. 

NIFTY has supports at 16,890, 16,800 and 16,740 . We can expect resistances at 17,080, 17,160 and 17,250.

BANK NIFTY has supports at 38,650, 38,500 and 38,000. Resistances are at 38,800, 39,000 and 39,200.

NIFTY has the highest call OI build-up at 17,200. The highest put OI build-up is at 17,000.

BANK NIFTY has the highest call OI build-up at 39,000 and the largest put OI build-up is at 38,000.

Foreign Institutional Investors net-sold shares worth Rs 4,600 crores. Domestic Institutional Investors net-bought shares worth 2,400 crores.

INDIA VIX spiked to 20.5.

Though DOW closed without damages, NASDAQ has moved down by 1% again. The major levels have been broken in the index and the next level to watch is the psychological 10K. IT stocks will suffer with the downmove at a time when they are expected to lead our rally after underperforming for the last few months.

The selling pressure we had later in the global markets was huge. Same was the case in Indian markets as we saw a last hour fall.

IMF has cut India’s GDP forecast again, revising the value to 6.8%. This is below RBI’s GDP forecast.

There will be a lot of shorts created in the system taking global negativity and sell-on-rise we are seeing in our markets. So, watch the upper levels and once they are crossed, we can see short covering.

The day is event-packed. Let us go through the events one by one:

UK GDP data: UK is in a deep economic crisis. The data will give a hint of the intensity.

India CPI: India’s inflation has been staying above the tolerance zone for a while and came out at 7% for the last two months. We can expect the September inflation to be at around 7.35%. Food inflation may hit a five-month high.

Wipro results: The IT sector is already in focus and we have Wipro announcing results today on top of it.

Industrial output data of both India and UK will be released today.

FOMC meeting minutes for the September meet will be crucial. Overnight holding should be done with precaution considering this event. The minutes will give us clarity on how the rate hikes are planned.

I will be watching 16,890 on the downside and 17,080 on the upside.

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