Risky Day for NIFTY. High Speculation in Options! - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started flat at 25,024 and moved down. Support was taken at the previous day’s low and the index quickly bounced back. A fresh all-time high was created before the index fell at 2:30 PM. NIFTY ended the day at 25,052, up 34 points or 0.14%.

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

What to Expect Today?

Asian markets are trading in the red.

The U.S. Futures are trading flat(+0.11%).

GIFT NIFTY is trading flat at 25,011, down by 44 points.

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

NIFTY has supports at 24,970, 24,850 and 24,760. We can expect resistances at 25,080, 25,130 and 25,200.

In NIFTY, there is a high call OI resistance at 25,100. There is also good put OI support at 25,000. PCR is at 1.12, bullish.

Foreign Institutional Investors net-sold shares worth Rs -1,347 crores. Domestic Institutional Investors net-bought shares worth Rs 439 crores.

INDIA VIX fell to 13.82.

There is very high trading activity near the spot level on NIFTY options. 25,000 put is a very high activity of 4 lakh+ OI. In situations like this, a gap-down or gap-up is trouble.

But thankfully, there will be a mostly flat opening in the market today.

The U.S. market is consolidating for Nvidia results, but our markets might not see that bias today. 

In the Fib Retracement chart of last month, our previous all-time high of 25,078 is acting as a good resistance for NIFTY. A close above this level will launch the next rally for the index.

Always keep one eye open for Open Interest(OI) while trading today. The heavy trading and OI activity would trigger quick unexpected moves in the market.

We are continuing our NIFTY and BANKNIFTY trades today. You can check out the marketfeed app for updates!

All the best for the day!