NIFTY to Open in Red. Fed Decision Tonight! - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday flat at 23,288 and had a volatile opening. It eventually went up to near 23,400 but lost all gains in the last hour of trade. NIFTY ended the day at 23,264, up by 5 points or 0.02%.

U.S. markets closed mixed. The European markets closed in red.

What to Expect Today?

Asian markets are trading mostly in the red.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in red at 23,290, down by 50 points.

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

NIFTY has supports at 23,200, 23,100 and 23,000. We can expect resistances at 23,310, 23,400 and 23,500.

BANKNIFTY has supports at 49,680, 49,500 and 49,300. We can expect resistances at 50,000, 50,100 and 50,250. 

In NIFTY, there is high call OI resistance at 23,500. Put sellers are active at 23,000 and 23,200. PCR is 0.89, indicating bearishness.

In BANKNIFTY, there is high call OI resistance at 50,000. Put sellers are active at 49,000 and 49,500. PCR is 0.78, indicating bearishness.

Foreign Institutional Investors net-sold shares worth Rs 111 crores. Domestic Institutional Investors net-bought shares worth Rs 3,193 crores.

INDIA VIX cooled down 10% to 14.76.

Our market is consolidating and gave a flat closing yesterday. FINNIFTY option sellers would have had a good day!

In BANKNIFTY expiry today, follow the trail of option sellers at 49,500 and 50,000. Any move outside of these zones can be watched for a good trade.

And after the expiry today, VIX is unlikely to fall too much. There are 2 major events coming up tonight. First is the U.S. inflation data, followed by the Fed Interest rate decision.

Expectation is that interest rates will remain flat, with a guidance on at least 1 rate cut this year.

So local cues and consolidation for the BNF expiry, and international cues for tomorrow’s NIFTY expiry. That is the expectation!

We will be continuing to stay out of trading today. You can check out our marketfeed app or our website by Thursday for new trades!

All the best for the day!