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NIFTY to Open Flat. Will it Break Consolidation? - Pre-Market Analysis Report

NIFTY is expected to open flat to a small gap-up today, following mixed global cues and positive Asian markets. The index has been consolidating, trading between budget day candle levels for two days.

By Ajay Ajith2 min read
NIFTY to Open Flat. Will it Break Consolidation? - Pre-Market Analysis Report

Key takeaways

  • NIFTY closed yesterday at 24,406, down by 7 points or 0.03%, after a gap-down opening and an uptrend.
  • Asian markets are mostly in the green, and U.S. Futures are also trading in the green, indicating a flat to small gap-up opening for NIFTY.
  • NIFTY has supports at 24,375, 24,300, 24,220, and 24,170, with resistances at 24,480, 24,650, and 24,800.
  • Foreign Institutional Investors net-sold shares worth Rs 2,605 crores, while Domestic Institutional Investors net-bought shares worth Rs 2,431 crores.
  • IT, FMCG, and Auto indices appear to be the strongest, and their continued strength could lead to a long period of breakout.

What Happened Yesterday?

NIFTY started yesterday at 24,230 with a gap-down and went up. The market showed strength from the morning and was on a clear uptrend. By the end of the day, the index barely closed flat. NIFTY ended the day at 24,406, down by 7 points or 0.03%.

U.S. markets closed mixed. European markets closed mixed.

What to Expect Today?

Asian markets are trading mostly in the green.

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

GIFT NIFTY is trading in small green at 24,478, up by 20 points.

All the factors combined indicate a flat to small gap-up opening in the market.

NIFTY has supports at 24,375, 24,300, 24,220 and 24,170. We can expect resistances at 24,480, 24,650 and 24,800.

BANKNIFTY has supports at 50,700, 50,550 and 50,250. We can expect resistances at 51,260, 51,800 and 52,000.

Foreign Institutional Investors net-sold shares worth Rs 2,605 crores. Domestic Institutional Investors net-bought shares worth Rs 2,431 crores.

INDIA VIX increased to 12.61.

The market is still confused after the volatility of budget day. NIFTY has been trading between the budget candle for 2 days in a row. However, BANK NIFTY has kept falling.

Earnings season is now continuing, and the market is mostly reacting accordingly.

But the Dow Jones is down 3%, and traders across the world are panicking. The U.S. index is near recent support in daily charts, so just keep a watch out for global trends.

Otherwise, IT, FMCG, and Auto seem to be the strongest indices. If they keep strong while the market is down, we might see a long period of breakout over the coming months.

Last Friday is when we say a deep correction in the market. Let us watch today for a cue on next week.

As we discussed on Tuesday, NIFTY should keep above the 24,150 support zone for this current rally to continue. 24,650 can be looked at on the upper side!

Any breakout beyond these zones will be a confirmation of a fresh trend. But currently, there is no bear attack in the market.

We are entering fresh NIFTY trades and continuing our BANKNIFTY trades today. You can check out the marketfeed app or our website for updates!

All the best for the day!

Frequently asked questions

How did NIFTY close yesterday?

NIFTY ended yesterday at 24,406, down by 7 points or 0.03%.

What are the key support levels for NIFTY today?

NIFTY has supports at 24,375, 24,300, 24,220, and 24,170.

What are the key resistance levels for NIFTY today?

NIFTY can expect resistances at 24,480, 24,650, and 24,800.

What were the actions of Foreign and Domestic Institutional Investors yesterday?

Foreign Institutional Investors net-sold shares worth Rs 2,605 crores, and Domestic Institutional Investors net-bought shares worth Rs 2,431 crores.

Written by

Ajay Ajith

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