RBI Meeting at 10 AM. Volatility Loading! - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day flat at 20,940 and fell to Wednesday’s low. The opening level was the day high and the market consolidated from there. NIFTY closed at 20,901, down by 36 points or 0.17%.

U.S. markets closed in the green(+0.17%). The European markets closed in the red.

What to Expect Today?

Asian markets are trading mixed.

The U.S. Futures are trading slightly flat.

GIFT NIFTY is trading in small red at 21,073.

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

NIFTY has supports at 20,850, 20,800 and 20,720. We can expect resistances at 20,950, 21,000 and 21,100.

In NIFTY, the highest put OI is at 20,000 and the highest call OI is at 21,000. PCR is 1.14.

BANKNIFTY has supports at 46,500, 46,240 and 46,000. We can expect resistances at 46,950, 47,200 and 47,500.

In BANKNIFTY, the highest put OI is at 46,500 and the highest call OI is at 47,000. PCR is 0.98.

Both institutions were net sellers yesterday. Foreign Institutional Investors net-sold shares worth Rs -1,564 crores. Domestic Institutional Investors net-sold worth Rs 9 crores.

INDIA VIX has increased to 12.64.

NIFTY traded between 20,850 and 20,950 in a 100-point zone yesterday. If you are avoiding the first few candles, it was tighter consolidation. Was good to see that the put side was defended throughout the day, indicating current strength in the market.

As we discussed last day, if you think the Indian markets are moving up based on just the election news, you will be wrong. The global markets have also been on a roll over the last month.

And currently, the U.S. markets are just 2% away from their all-time highs from Jan 2022. If it breaks out, our market also breaking out above 21,000 will be a piece of cake

Today’s highlight is the RBI Monetary Policy Committee meeting minutes coming out at 10 AM. RBI Governer will be announcing the last interest rate decision before the Union Budget in Feb.

The broad expectation is that rates will be held at current levels. Do watch out for volatility in the markets around this time. You know the levels to watch! 

Have a watch out for IT stocks, as NASDAQ continues its rally.

We will be entering fresh NIFTY trades and modifying our BANK NIFTY trades today. You can check out our trades on 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!