Non-Stop Rally! Pre Market Analysis

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

Stocks

Warburg Pincus affiliate has offloaded 0.3% stake in Bharti Airtel Ltd through a block deal on Friday for Rs 1,649 crore.

The merger of HDFC Bank and Housing Development Finance Corporation (HDFC Ltd) will be effective July 1.

TVS Motor Company expects growth momentum to continue in the current fiscal, with the overall economy anticipated to grow at a robust pace and a continuous improvement in the road infrastructure.

What to Expect Today?

NIFTY opened with a gap-up at 19,058 on Friday. The rally continued and 19,200 was touched. NF closed at 19,189, up by 217 points or 1.14%.

BANK NIFTY opened with a gap-up at 44,667 and showed divergence initially. Support was taken near 44,500 and the index rallied. There was a resistance at 44,800 and BN closed at 44,747, up by 420 points or 0.95%.

IT rallied and closed 2.5% in the green.

The US markets and the European markets moved higher on Friday.

The Asian markets are trading higher.

The U.S. Futures and European futures are trading flat.

GIFT NIFTY is trading higher at 19,370.

All the factors combined indicate a gap-up opening.

NIFTY has supports at 19,000, 18,850 and 18,770. We can expect resistances at 19,200 and 19,300.

BANK NIFTY has supports at 44,500, 44,300 and 44,170. Resistances are at 44,800 and 45,000.

FIN NIFTY has supports at 20,000, 19,950 and 19,880. We can expect resistances at 20,100 and 20,200.

NIFTY has the highest call OI build-up at 19,500. The highest put OI build-up is at 19,000. PCR is 1.6.

BANK NIFTY has the highest call OI build-up at 45,000. The highest put OI build-up is at 44,500. PCR is 1.5.

FIN NIFTY has the highest call OI build-up at 20,100. The highest put OI build-up is at 20,000. PCR is 1.5.

INDIA VIX  is at 10.8.

Foreign Institutional Investors net-bought shares worth Rs 6,000 crores. Domestic Institutional Investors net-sold shares worth 1,000 crores.

What a strong week our markets had! Nifty created a new all-time high on Wednesday and it was a holiday on Thursday. The index broke 19K as well on Friday and continued to move up by another 200 points.

Gift Nifty will replace Sgx Nifty from today and NSE has taken the ownership of Nifty futures trading in Singapore Stock Exchange and transferred to Gift City.

HDFC Bank- HDFC merger has been completed. 

There was some divergence in Bank Nifty if you look at the initial price action in Nifty. 

FIIs are puring in money and this is taking the index higher without profit booking. What is ideal for the rally would be a consolidation somewhere here and then a further breakout later after gaining strength.

All the best for the New Quarter!

I will watch 19,000 on the downside in NIFTY. 19,250 can be watched on the upside.

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