Joe Biden Drops Out. Reliance and HDFC Bank Results Reaction - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started Friday at 24,854 with a gap-up and fell. It was an all-time high opening but the index fell back to its consolidation zone from last week. With the biggest intraday fall since June 2, NIFTY ended the day at 24,530, down by 270 points or 1.09%.

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

What to Expect Today?

Asian markets are trading mostly in the red.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in red at 24,394, down by 142 points.

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

NIFTY has supports at 24,480, 24,300, 24,220 and 24,170. We can expect resistances at 24,500, 24,650 and 24,800.

BANKNIFTY has supports at 52,200, 52,000 and 51,700. We can expect resistances at 52,420, 52,630 and 52,800.

Last week, Foreign Institutional Investors net-bought shares worth Rs 10,944 crores. Domestic Institutional Investors net-sold shares worth Rs -4,226 crores.

INDIA VIX increased to 14.86.

Even with the fall on Friday, NIFTY closed above its previous day’s low and the 24,500 mark. However, the smallcap and midcap indices saw a fall of more than 2%.

In the U.S., Joe Biden dropped out of the presidential race. Asian markets are responding negatively to this.

IT stocks look the strongest for now, with Infosys even closing 2% in green on Friday. The rally is fueled by Q1 results.

Tomorrow is the budget day, you can expect the market to be volatile for sure. Tax cuts for salaried individuals and increases for Long Term Capital Gains are expected.

Reliance Industries reported a 5% fall YoY in its consolidated net profit to Rs 15,138 crore for the Q1. Even though this came out on Friday, markets will be reacting to it today. Reliance GDR trends indicate a 3-4% gap-down.

Similarly, Wipro ADR is down by 11% after it predicted revenue to decrease next quarter. HDFC Bank and Kotak Bank will also react to their results.

All things considered, the market will be weak today. Watch for it to keep above the 24,200 and 24,000 marks. Otherwise, a bigger fall would follow.

We are not running our NIFTY and BANKNIFTY trades for the budget week. You can check out the marketfeed app or our website for new trades on Thursday!

All the best for the day!