Inflation Eases - Pre Market Analysis

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

Stocks

JSW Steel has been declared as a preferred bidder from the Directorate of Mines and Geology, Goa, for grant of mining lease for iron ore mineral in the state of Goa.

Caplin Point has received approval from USFDA for cisatracurium besylate injection.

Tata Motors' owned Jaguar Land Rover plans an annual investment of 3 billion pounds while targeting revenue of over 30 billion pounds by FY26

The Board of Inox Wind Energy has approved a merger with its parent company Inox Wind.

Greaves Cotton's subsidiary Greaves Electric Mobility to partner with Bike Bazaar Finance to provide flexible financing options for the electric three-wheeler portfolio.

What to Expect Today?

NIFTY opened with a gap-up at 18,634 yesterday. There was consolidation like the last two Mondays. NIFTY closed at 18,601, up by 38 points or 0.21%.

BANK NIFTY opened flat at 44,061 and had a consolidating day. There was bearishness in the index. BN closed at 43,944, down by 45 points or 0.1%. 

IT closed 1.5% higher.

The US markets closed higher. The European markets rallied.

The Asian markets are trading higher.

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

SGX NIFTY is trading higher at 18,760.

All the factors combined indicate a gap-up opening.

NIFTY has supports at 18,550, 18,500 and 18,420. We can expect resistances at 18,640, 18,730 and 18,770.

BANK NIFTY has supports at 43,920, 43,790 and 43,680. Resistances are at 44,000, 44,100, 44,170 and 44,280.

FIN NIFTY has supports at 19,390, 19,320 and 19,240. We can expect resistances at 19,490, 19,540 and 19,600.

NIFTY has the highest call OI build-up at 18,700. The highest put OI build-up is at 18,600.

BANK NIFTY has the highest call OI build-up at 44,000. The highest put OI build-up also is at 44,000.

FIN NIFTY has the highest call OI build-up at 19,500. The highest put OI build-up is at 19,000.

INDIA VIX  is at 11.1.

Foreign Institutional Investors net-bought shares worth Rs 600 crores. Domestic Institutional Investors net-bought shares worth 1,800 crores.

We have seen consolidation after gap-up opening on the last two Mondays. The only difference yesterday was that the market did not get back to the previous day's range in the last two weeks as the market was rallying earlier.

As we discussed yesterday, watch 43,475 as it is a major support in the hourly chart. We have seen multiple bounces off this zone. However, the index is justifying the VIX value now, unlike Friday. So, we may not reach the index reaching there today.

India’s inflation eases to 4.25% in line with the estimates. This is a 25-month low. Note that inflation has dropped by 2.3% since January. But it has been 44 months since inflation came down below 4%.

Industrial growth data also came out strong.

It is FIN NIFTY expiry today. Straddle Premium is 87 and the spot is exactly at 18,400. Lower premium will make aggressive adjustments difficult.

19,320 and 19,520 are major levels in FIN NIFTY.

I will watch 18,500 on the downside in NIFTY. 18,675 can be watched on the upside.

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