NIFTY to Open Flat. Fed Interest Rate Decision Soon! - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday with a 100-point gap-up at 22,446. This gap-up was soon lost as the market moved down. Around 11 AM, a fresh low for the week was created and the market broke down. NIFTY closed the day at 21,997, down by 338 points or 1.51%.

U.S. markets closed flat. The European markets closed in slight green.

What to Expect Today?

Asian markets are trading mixed.

The U.S. Futures are trading in slight green.

GIFT NIFTY is trading flat at 22,079.

All the factors combined indicate a flat opening in the market.

NIFTY has supports at 21,980, 21,920, 21,800 and 21,680. We can expect resistances at 22,090, 22,200 and 22,300.

BANKNIFTY has supports at 46,700, 46,470 and 46,240. We can expect resistances at 46,980, 47,200 and 47,420.

In NIFTY, there is high call OI resistance at 22,000. There is a high put OI support also at 22,000. PCR is bearish at 0.49.

Foreign Institutional Investors net-sold shares worth Rs -4,595 crores. Domestic Institutional Investors net-bought shares worth Rs 9,093 crores.

INDIA VIX jumped to 14.43.

The March Madness in the market continues. NIFTY fell 500+ points intraday yesterday.

The selling that we saw yesterday has the potential to be just a trailer. A correction was expected after reaching 22,500 levels, which is what we see now.

Today is the 2nd NIFTY expiry in the March series. We saw how volatile and directional moves were seen on FINNIFTY and BANKNIFTY expiries this week.

Smallcaps continue to fall because of the change in regulations around mutual funds. Smallcap index fell by 5% yesterday. Stay tuned to the marketfeed YouTube channel to learn more about it today.

An upcoming major event will be the Federal Open Market Committee(FOMC) meeting on March 19, and 20. This will be where decisions on interest rates in the U.S. will be taken up. With yesterday’s U.S. inflation data increasing again, there might be very harsh comments in the meeting.

But till now, our market is the worst hit. The U.S. markets are still trading at all-time highs.

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

All the best for the day!