SBI Profits Falls 35%. NIFTY to Open Flat - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started Friday at 21,825 with a gap-up and went up. After some consolidation, there was again serious buying that took the market exactly to its earlier all-time high. From there, profit booking kicked in. NIFTY closed the day at 21,853, up by 156 points or 0.72%.

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 in the red.

GIFT NIFTY is trading in the red at 21,935.

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

NIFTY has supports at 21,800, 21,650 and 21,580. We can expect resistances at 21,750, 22,000 and 22,120.

BANKNIFTY has supports at 45,850, 45,660, 45,480 and 45,230. We can expect resistances at 46,000, 46,240, 46,500 and 46,950.

Last week, Foreign Institutional Investors net-sold shares worth Rs 2,009 crores. Domestic Institutional Investors net-bought shares worth Rs 10,107 crores.

INDIA VIX increased to 14.69.

The Dow Jones index in the U.S. market hit yet another all-time high on Friday. Even though there is not much momentum, their market is slowly moving up each week.

This might also be the reason why Foreign Institutional Investors are trying to pull money from emerging markets. When the U.S. markets are performing well, this does tend to happen.

Many global markets including China, Hong Kong and Kospi are trading very much down from their all-time high levels. However, in India, Domestic investors have been buying up opportunities, and keeping the market up over the last many months.

Our Domestic investors have been buying up opportunities, and keeping the market up over the last many months. This will continue to happen. Watch for the Mutual Fund inflow report from January towards the end of this week.

When institutional and speculative traders' activity increases together, we see days like last Friday, with sudden up-moves followed by big crashes.

Today, you must watch out for how the market reacts to SBI and Tata Motors' results. SBI's net profit fell 35% due to provisioning for pensions and wage hikes, while Tata Motors net profit shot up 137%. Both could have larger impacts on other stocks in their sectors. 

Otherwise, technical levels are what you can continue to watch for the beginning of the week.

Repeating this from the last day - “There is even a world where, if 22,000 is broken with strength, we could see a NIFTY rally to 22,120[all-time high]. 21,480 would again act as a strong support from here.” This happened once and can happen again.

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!