Major Levels Broken - Pre Market Analysis

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

Stocks

Gujarat Gas said its Board has approved the appointment of Raj Kumar, IAS as Chairman of the company with effect from February 21.

Lemon Tree has signed a license agreement for a 47-room property in Bhopal under the company’s brand Lemon Tree Hotel. The hotel is expected to be operational by December 2023. The hotel will feature 47 well-appointed rooms, a restaurant, a banquet, a gym and other public areas.

Wipro Lab45, the innovation lab of Wipro, announced the launch of its decentralized identity and credential exchange (DICE) ID, which puts users in control of their personal data and enables faster, easier and more secure sharing of private information online.

Greaves Cotton announces leadership expansion across retail, finance, and e-mobility businesses, to steer the next phase of growth. This includes the appointment of Narasimha Jayakumar as CEO of the retail business, Sandeep Divakaran as CEO of Greaves Finance, and Chandrasekar Thyagarajan as CFO of Greaves Electric Mobility.

Venus Remedies has received marketing authorisations for its generic cancer drugs from Uzbekistan and Palestine.

What to Expect Today?

NIFTY opened with a gap-down at 17,752 and had a major down-trending day. Support was taken at 17,530 and the index closed at 17,754, down by 272 points or 1.53%.

BANK NIFTY opened with a gap-down at 40,485 and fell heavily. The index broke 40K too. The close was at 39,996, 678 points lower or 1.67%.

IT moved down by 1.1%.

The US markets closed in the red yesterday. The  European markets also closed lower.

The Asian markets are trading lower.

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

SGX NIFTY is trading at 17,680  indicating a gap-up opening.

NIFTY has supports at 17,530, 17,420 and 17,310. We can expect resistances at 17,600, 17,650, 17,700 and 17,770.

BANK NIFTY has supports at 39,900, 39,750 and 39,415. Resistances are at 40,140, 40,500 and 40,665.

NIFTY has the highest call OI build-up at 18,000. The highest put OI build-up is at 17,500.

BANK NIFTY has the highest call OI build-up at 41,500. The highest put OI build-up is at 40,000.

INDIA VIX spiked by 11% to 15.6.

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

The US markets closed in the red yesterday as well. But the losses were minimal due to the resilience of the IT stocks. Let us watch NIFTY IT to see if it can lead our market today.

17,600 which was the swing point we were watching for a reversal has been broken. The bears need a follow-up for yesterday’s down-move to bring the markets further down. An immediate recovery will be appreciated, taking the bulls’ side.

Fed Minutes had nothing surprising to the markets. The officials said that they will fight inflation with interest rate hikes as they have been saying since last year.

RBI minutes also will not have an impact on the market. The Governor said that the global economic outlook has improved since the December MPC meeting.

Note that US GDP data will be out today.

If you look at the day-chart of NIFTY, there is absolute bearishness. All the major swing points have been broken. The weekly chart also tells the same. Today’s expiry will be crucial for the bulls as they will have to bring the markets up today or tomorrow to have a better weekly close.

There are multiple swing points around 17,650 that you can watch today. The 5-minute chart will give you better clarity. In case the gap-up is sold into, watch the previous day-low and if there is major bearishness, watch 17,500 and 17,420 for the next supports.

There is a huge put OI build-up at 17,500. But what is surprising to me is that the highest call OI build-up is far away at 18,000. It could be due to the uncertainty ahead of the Fed minutes and we may see huge call OI at a closer strike once the market opens.

I will watch 17,530 on the downside in NIFTY. 17,700 can be watched on the upside.

Follow us on the marketfeed app’s Signal section to get real-time updates from the market. All the best for the day!