Infosys ADR Down. Gap-Down Opening Again! - Pre-Market Analysis Report


What Happened Yesterday?

NIFTY started yesterday at 22,020 with a gap-up and consolidated. Mostly, there were sideways moves with a trading range of 130 points. NIFTY ended the day at 22,011, up by 172 points or 0.79%.

U.S. markets closed in the green. The European markets closed in green.

What to Expect Today?

Asian markets are trading in the red.

The U.S. Futures is trading flat.

GIFT NIFTY is trading in red at 22,057.

All the factors combined indicate a gap-down opening in the market.

NIFTY has supports at 21,980, 21,920, 21,800 and 21,680. We can expect resistances at 22,090, 22,200 and 22,300.

BANKNIFTY has supports at 46,470, 46,240 and 46,000. We can expect resistances at 46,700, 46,980, 47,200 and 47,420.

Foreign Institutional Investors net-sold shares worth Rs 1,826 crores. Domestic Institutional Investors net-bought shares worth Rs 3,208 crores.

INDIA VIX crashed to 12.51.

After the fall on Tuesday, Wednesday - yesterday was the recovery day. At one point, NIFTY was up 250 points from the previous close.

But this was mostly contributed by the gap-up opening. Fed Reserve giving indication that there could be multiple rate cuts this year was the reason for positivity.

But the question is if it will be another dead cat bounce. Even today for the last day of the week, NIFTY will be opening with a gap-down at around 21,950.

Accenture from the U.S. has cut its guidance for the year, giving a negative indication to Indian IT services companies including Infy and TCS. There could be a negative opening.

India VIX has fallen below early January levels. It is also below a 200-day EMA trend. It is an indication of consolidation in the market before the elections. A jump back above 14 ranges would be nice!

Let’s see if 21,900 is held again today. The Bank NIFTY level to be watched out for is 46,240.

We will be continuing our NIFTY and BANKNIFTY trades today. You can check out our trades on the marketfeed app or our website!

All the best for the day!

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