Small Gap-up in Queue. Second Half to be Crucial - Pre Market Analysis

Here are some of the major updates that could move the markets today:

Stocks

Maruti Suzuki India will increase the prices of its vehicles 'substantially' from next month as it looks to offset the impact of rising input costs and make provisions to update the model range to conform to stricter emission norms which kick in from April 2023.

NTPC is likely to get a strategic investor for its arm NTPC Green Energy by March 2023, which will help raise up to Rs 3,000 crore for implementing renewables projects in the country.

Godrej Properties has bought an 18.6 acre land parcel at Kandivali, in Mumbai for around Rs 750 crore to develop a luxury housing project. It informed about the land transaction but did not disclose the total deal value.

NMDC reported eight per cent growth compared to the same month last year in iron ore production at 3.61 million tonnes and 5.5 per cent jump in sales at 3.04 million tonnes in November.

Amara Raja Batteries said it will be investing over Rs 9,500 crore, over a period of 10 years for setting up research and development, and a greenfield manufacturing facility for lithium-ion battery-making in Mahbubnagar district of Telangana.

What to Expect?  

NIFTY opened with a gap-down at 18,775 on Friday. Support was taken near 18,640 and the index closed at 18,696, down by 116 points or 0.62%.

BANK NIFTY opened with a gap-down at 43,067 and consolidated by taking support at 43,000. BNF closed at 43,103, down by 157 points or 0.36%.

IT closed 0.2% lower.

The US markets closed flat and the European markets closed mixed.

The Asian markets are trading higher.

The U.S. Futures and European futures are trading slightly in the red.

SGX NIFTY is trading at 18,860 indicating a small gap-up.

NIFTY has supports at 18,680, 16,640, 18,600 and 18,550. We can expect resistances at 18,700, 18,780 and 18,850.

BANK NIFTY has supports at 43,000, 42,880 and 42,600. Resistances are at 43,130, 43,350 and 43,500.

FINNIFTY has supports at 19,200, 19,150 and 19,080. Resistances are at 19,280, 19,320, 19,430 and 19,480.

NIFTY has the highest call OI build-up at 19,000. The highest put OI build-up is at 18,700. 

BANK NIFTY has straddle at 43,000.

Foreign Institutional Investors net-bought shares worth Rs 200 crores. Domestic Institutional Investors net-bought shares worth 700 crores.

INDIA VIX is at 13.45.

Though we had a strong week, Friday-close was slightly bearish. However, as we discussed in the Dalal street article yesterday, the bears will find it hard to regain control. 

There could be some profit booking. But, a reversal would need a close below 18K, the first step being 18,600. Let us see if there is scope for a head and shoulder pattern.

India Services PMI will be out today. US Services PMI also will be released.

It is a major concern that Covid cases in China is at peak now. The markets need the restriction to be eased. But new deaths are being reported in cities that are slowly moving towards easing restrictions.

With rising inflation, Japan has hit a three month low in services activity.

The second half will be crucial today. Can we get another follow-up in the weekly timeframe is the question.

I will be closely watching 18,600 on the downside and 18,780 on the upside.

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