Small Gap-up Expected. Axis Bank in Focus - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started Friday with a gap-up at 22,021 and moved down. The index did not break the previous day’s high and kept moving sideways. Overall, NIFTY moved in a 100-point zone for the day, with the lowest intraday movement in the last 30 days. NIFTY closed the day at 21,040, up by 130 points or 0.59%.

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

What to Expect Today?

Asian markets are trading mixed.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in green at 22,141.

All the factors combined indicate a gap-up opening in the market.

NIFTY has supports at 21,955, 21,800 and 21,690. We can expect resistances at 22,080 and 22,120[all-time high], and 22,200.

BANKNIFTY has supports at 46,240, 46,000 and 45,840. We can expect resistances at 46,500, 46,700 and 46,950.

Foreign Institutional Investors net-bought shares worth Rs 251 crores. Domestic Institutional Investors net-bought shares worth Rs 1,571 crores.

INDIA VIX stayed flat at 15.22.

NIFTY closed very strong last week, near the weekly and all-time highs. There is an indication that a gap-up of a further 40 points will be there in the morning.

IT and Auto hit fresh 52-week highs and are looking at breakout moves. If BANKNIFTY also chips in, then the market will fly to 22,500. 

On the other, there are a few important events to note this week. On Wednesday, the U.S. Fed Reserve will be publishing the Fed Meeting Minutes.

This will give a good insight into what members of the Fed were thinking on cutting interest rates in the future. On Thursday, the equivalent RBI Monetary Policy meeting minutes will be published from India.

If otherwise, keep an eye out for breakout stocks and indices. There is money flowing in the market, but make sure you find the right stocks. There was an allegation on Axis Bank about a big scam, but the bag had denied it. Let us see what happens today.

If this does not affect the market, the overall sentiment is positive. Slight weakness in the U.S. market is offset by strong GIFT NIFTY. A breakout above the all-time high can also expected.

Do remember the U.S. markets are closed tonight, so there could be lower activity from FIIs.

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!