Reliance Near Crucial Levels. NIFTY Expiry Volatility? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day flat at 19,784. Initially, Nifty rose to yesterday’s high of 19,830 levels, took rejection there, and experienced a sharp decline of nearly 120 points to the support level at 19,700. Then, it bounced back 120 points! Nifty closed at 19,811, up by 28 points or 0.14%.

BANK NIFTY started the day flat at 43,663. The index made higher lows and fell nearly 460 points to 43,230 levels. Then, it made a sharp retracement of 245 points. BNF closed at 43,449, down by 239 points or 0.55%.

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

What to Expect Today?

Asian markets are trading mixed.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in green at 19,896.

All the factors combined indicate a flat opening in the market.

NIFTY has supports at 19,790, 19,750, 19,720 and 19,640. We can expect resistances at 19,840, 19,870 and 19,920.

Foreign Institutional Investors net-sold shares worth Rs 306 crores. Domestic Institutional Investors net-bought worth Rs 721 crores.

INDIA VIX fell to 11.86.

BANK NIFTY had a rather volatile day of expiry yesterday. It was mostly down trending for the day, with textbook support levels. But towards the last 2 hours, the index moved back up.

This would have caused trouble to intraday option sellers once again, indicating that expiry trading is indeed getting tougher.

The banking system liquidity deficit, which is the ready cash available to banks to meet needs, has come down to a 5-year low. This was caused by the GST payment outflows and might cause some additional pressure on the banking index today.

US crude prices crashed yesterday night but recovered today. Production cuts scheduled for this weekend were postponed. Have an eye out for related stocks.

Talking about NIFTY expiry today, we have straightforward levels to watch out for. PCR is neutral with OI data indicating a trading range of 19,800 plus or minus 85 points.

Even after this trading range, keep an eye out for the levels which we have discussed above. Overly aggressive trades are supposed to be avoided, as the index is in the mood for intraday trend reversals.

Do have a lookout for Reliance, if it touches the 2,400 mark back again today.

We will be continuing our NIFTY and 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!