Markets to Open Lower with U.S. Ratings Downgrade - Pre-Market Analysis Report


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

Rating agency Fitch downgraded the US credit rating by one step to AA+, citing expected fiscal deterioration over the next three years and growing general government debt burden.


Maruti Suzuki produced 1.86 lakh vehicles in July, up 1% YoY. Maruti is also going to acquire a 100% stake in Suzuki Motor Gujarat(SMG) from the Japanese parent company - Suzuki Motor Corporation. This was one of the major issues with long-term investment in the stock - Why You Should NOT Invest in Maruti Suzuki.

TVS Motors has announced sales volume at 3.26 lakh units for July 2023, up 4% YoY. This was majorly contributed by domestic business, while exports fell. Electric scooter sales doubled from last year.

Hero Motocorp’s 2 offices and the residence of the executive chairman were raided yesterday by the Enforcement Directorate. 

DLF promoter and chairman emeritus sold his entire stake of 0.59% in the company for Rs 730 crores.

Royal Enfield reported total sales growth of 32% year-on-year to 73,117 motorcycles. Contributed by domestic growth, exports dropped 20%.

Major results today: Titan, Ambuja Cements, HPCL, Indigo, Mankind Pharma, Godrej Properties, IOB

What to Expect Today?

NIFTY started the day at 19,784 with a small gap-up. It tried to move up but failed, and eventually consolidated with a bearish bias. NIFTY closed at 19,733, down by 20 points or 0.1%.

BANK NIFTY started the day at 45,740 and consolidated. But after 1 hour, it lost strength and moved down. BANK NIFTY closed at 45,592, up 58 points or 0.13%.

US markets closed mixed. The European markets closed in the red.

The Asian markets are mostly trading in the red.

The U.S. Futures are trading in the red.

GIFT NIFTY is trading in the red at 19,747.

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

NIFTY has supports at 19,760, 19,660, 19,617 and 19,566. We can expect resistances at 19,784, 19,846 and 19,920.

BANK NIFTY has supports at 45,472, 45,230, and 44,900. Resistances are at 45,860, 46,000, and 46,240.

NIFTY has the highest call OI build-up at 19,800. The highest put OI build-up is at 19,600 and 19,700. PCR is at 0.79.

BANK NIFTY has the highest call OI build-up at 46,000. The highest put OI build-up is at 45,500. Call sellers in the 45,500 straddle running away. PCR is at 0.76. 

Foreign Institutional Investors net-sold shares worth Rs -92 crores. Domestic Institutional Investors net-bought worth 1,035.69 crores.

INDIA VIX is at 10.28.

Reliance dragged the market down yesterday, while HDFC Bank and Infy moved it up.

The market was trying to stay up and consolidate near this zone before a breakout. But looks like the global markets are not playing along!

A gap-down of 50 points is expected and you know the major levels to watch out for from above. The put sellers at 19,700 will be okay, as they are mostly straddle positions. If the market moves towards 19,600 levels, the sellers there will cover their positions and drag NIFTY down to 19,500 zones.

Global markets which were consolidating near their all-time highs, might see a small correction, but not expecting huge reactions as we can see from U.S. futures.

So watch out for initial weakness, but a rebound towards the second half of the day if European markets move to green.

Tomorrow is the first expiry of the August series. Hope you have a strong 2 days of trading ahead!

We will be trading Smart Money (NIFTY) and Piggy Bank (BANK NIFTY) today. Follow along on the marketfeed app, or on our website for trades!

Make sure that you tune in to The Stock Market Show at 7 PM on our YouTube channel. All the best for the day!

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