NIFTY to Open Near All-Time High! Can it break out? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day flat at 21,830 and took support near Monday’s low. From there, it bounced up well. Resistance was taken at 21,950 near closing time, which is also the previous day’s high. NIFTY closed the day at 21,929, up by 157 points or 0.79%.

U.S. markets closed in the green. The European markets closed in the green.

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 the green at 22,112.

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

NIFTY has supports at 21,955, 21,800, 21,650 and 21,580. We can expect resistances at 22,080, 22,120 and 22,200.

BANKNIFTY has supports at 45,560, 45,340, 45,230. We can expect resistances at 46,000, 46,240, 46,500 and 46,950.

In NIFTY, there is high call OI resistance at 22,000 and 22,200. There is high put OI support at 21,900. PCR is neutral at 0.99.

In BANKNIFTY, there is high call OI resistance at 46,000. There is high put OI support at 45,500. PCR is bearish at 0.64.

Both institutions turned net buyers yesterday. Foreign Institutional Investors net-bought shares worth Rs 92 crores. Domestic Institutional Investors net-bought shares worth Rs 1,096 crores.

INDIA VIX increased to 15.78.

GIFT NIFTY is up by more than 100 points from yesterday’s market closing. This is not due to any reason, as we can understand. In a bull market like this, the bounce-back has been as strong as expected.

Since the market is likely to open above the 22,000 zone, there is going to be a lot of short covering happening. As it is very near to expiry, and market had fallen well on Monday, there is a good activity by bears near the 22k zone.

The opening as indicated by GIFT NIFTY, is around the all-time high zone. Last Friday, the market touched this level of 22,125 and fell heavily. Let’s see if there will be strength for a breakout today!

Good rotation is being seen inside specific stocks. One day Reliance is shooting up 6-7%, and the next day we saw TCS moving up 4%. Yesterday, there was good bullishness in Pharma stocks.

Who would take the baton forward today is not clear, but the only thing you have to look for as traders is whether the all-time high is broken and sustained.

Once this is done, it could unlock the next part of NIFTY’s rally to the 22,500 levels.We will be modifying our NIFTY and BANK NIFTY trades today. You can check out our trades on the marketfeed app or our website!

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