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Iran War Gap-Down! TCS Results Reaction - Pre-Market Analysis Report

NIFTY is expected to open with a gap-down due to global market adjustments to US CPI inflation data and Iran attacking Israel, despite better-than-expected TCS revenues.

By Ajay Ajith2 min read
Iran War Gap-Down! TCS Results Reaction - Pre-Market Analysis Report

Key takeaways

  • NIFTY ended Friday at 22,519, down by 234 points or 1.03%, after a small gap-down and subsequent sell-off.
  • Asian markets are trading in the red, and GIFT NIFTY is trading in red at 22,452, indicating a gap-down opening for the market.
  • The U.S. CPI rose 3.5% from a year ago in March, while India's retail inflation eased to a 10-month low of 4.85% in March.
  • Foreign Institutional Investors net-sold shares worth Rs 6,526 crores last week, while Domestic Institutional Investors net-bought shares worth Rs 12,231 crores.

What Happened Yesterday?

NIFTY started Friday at 22,687 with a small gap-down and tried to move up. But at every rise, the market got sold off. The day ended with a 200+ point fall from the highs. NIFTY ended the day at 22,519, down by 234 points or 1.03%.

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

What to Expect Today?

Asian markets are trading in the red.

The U.S. Futures are trading in green.

GIFT NIFTY is trading in red at 22,452.

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

NIFTY has supports at 22,420, 22,360, and 22,280. We can expect resistances at 22,525, 22,580 and 22,650.

BANKNIFTY has supports at 48,400, 48,000 and 47,800. We can expect resistances at 48,600, 48,800 and 49,000.

NIFTY has the highest call OI resistance at 22,700. One of the highest put OI support is at 22,200.

Last week, Foreign Institutional Investors net-sold shares worth Rs 6,526 crores. Domestic Institutional Investors net-bought shares worth Rs 12,231 crores.

INDIA VIX stayed around 11.53.

NIFTY is indicating a good gap-down as global markets adjust to 2 problems: US CPI inflation data and Iran attacking Israel.

For perspective, the U.S. CPI rose 3.5% from a year ago in March, more than expected. Meanwhile, India's retail inflation eased to a 10-month low of 4.85% in March.

The problem is that this indicates any hopes for rate cuts in June is gone now.

But let’s get back to today. After a couple of shorter trading weeks, NIFTY is back to full fledge this week.

When the market opens today, there will be some pressure from the news of the war and the negative U.S. market on Friday. But even GIFT NIFTY is indicating just a 120-point gap-down. 

TCS revenues are also looking better than expected. The earnings season is getting started!

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

All the best for the day!

Frequently asked questions

What caused the expected gap-down opening in the market?

The expected gap-down opening is due to global markets adjusting to two problems: US CPI inflation data and Iran attacking Israel.

What were the NIFTY's support and resistance levels?

NIFTY has supports at 22,420, 22,360, and 22,280, and resistances at 22,525, 22,580, and 22,650.

How did Foreign and Domestic Institutional Investors perform last week?

Last week, Foreign Institutional Investors net-sold shares worth Rs 6,526 crores, while Domestic Institutional Investors net-bought shares worth Rs 12,231 crores.

Written by

Ajay Ajith

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