Negative Global Markets - Pre Market Analysis

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

Stocks

Ashok Leyland Ltd reported a nearly 17% year-on-year (YoY) drop in net profit for the quarter ended March to Rs 751.41 crore, despite a rise in revenue.

NMDC Ltd has posted 22% growth in its consolidated net profit at Rs 2,277 crore for the three months ended March. Revenue from operations fell 14% to Rs 5851 crore for the reporting fourth quarter.

Varun Beverages has incorporated a wholly-owned subsidiary Varun Beverages South Africa (PTY) Ltd in Johannesburg to explore the business of manufacturing and distribution of beverages.

Metro Brands has posted net profit of Rs 68.5 crore for the quarter ended March. Revenue from operations during the quarter came in at Rs 544 crore.

Dixon Technologies posted net profit of Rs 81 crore for the fourth quarter. Revenue during the quarter was at Rs 2,065 crore.

What to Expect Today?

NIFTY opened with a gap-up at 18,365, moved up and consolidated at the top. There was a last hour fall like the previous Tuesdays and NIFTY closed at 18,348, up by 34 points or 0.18%. 

BANK NIFTY opened flat at 43,935, took support at 43,900 and moved up. It was volatility within the range. The last hour fall took the index down and BANK NIFTY closed at 43,982, up by 59 points or 0.13%.

IT closed 0.46% down.

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

The Asian markets are trading lower.

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

SGX NIFTY is trading lower at 18,284.

All the factors combined indicate a gap-down opening.

NIFTY has supports at 18,315, 18,250 and 18,200. We can expect resistances at 18,365, 18,420 and 18,460.

BANK NIFTY has supports at 43,850, 43,680 and 43,500. Resistances are at 44,000, 44,100 and 44,500.

NIFTY has the highest call OI build-up at 18,400. The highest put OI build-up is at 18,200.

PCR is 1.1.

BANK NIFTY has the highest call OI build-up at 44,000. The highest put OI build-up also is at 44,000.

PCR is 0.95.

INDIA VIX  stays at 12.6.

Foreign Institutional Investors net-bought shares worth Rs 200 crores. Domestic Institutional Investors net-bought shares worth 400 crores.

There is global negativity now as the major markets closed in the red. NASDAQ saw a correction of more than 1%. The global IT ector has been seeing a rally and that was seen in our IT sector also on Monday. There was a small correction in NIFTY IT yesterday. Let us see if there is more down-move.

Germany Manufacturing PMI came out lower than expectations at 42.5 whereas it was expected around 45.

We have UK Inflation coming out today. 

Fed Minutes will be the highlight. The minutes for the meeting on 3rd May will be released tonight. It will give us more insight on chances of another hike. 

BNF trading within the range with volatility will make the life of option buyers hard. And lower premium will make the life of non directional sellers hard. The major move is happening in the beginning and in the last hour. Trade with caution!

I will watch 18,250 on the downside in NIFTY. 18,420 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!