S&P VIX Above 30, TCS Results and More - Pre Market Analysis

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

Stocks

HDFC Bank  has completed over half of the digital transformation work it had undertaken over two years ago and is past the peak on tech spends as a percentage of the income. It can be noted that concerns on the digital front had led to an unprecedented penal action on the largest private sector lender from the RBI.

HCL Technologies has expanded strategic partnership with Google Cloud to accelerate digital services for enterprises. HCL Tech NSE 1.96 % will train up to 18,000 technology and consulting professionals on Google Cloud.

Titan  said its overall sales grew 18 per cent year-on-year in the September quarter. The company, which operates in the segments as jewellery, watches & wearables, and eyecare has witnessed healthy double-digit growth across most businesses. Titan added 105 stores in its retail network in the second quarter of the current fiscal.

NTPC has roped in GE Gas Power to help it reduce carbon emissions at its 645 MW Kawas gas power plant in Gujarat. Both companies have entered into a Memorandum of Understanding (MoU) in this regard.

Britannia Industries has acquired a controlling stake in Kenya-based Kenafric Biscuits, a move which will help the company set up a manufacturing base and expand sales in the African markets. Britannia and Associates Dubai (BADCO), a wholly-owned subsidiary of Britannia has acquired a 51 per cent equity stake.

What to Expect? 

NIFTY opened with a gap-up at 17,382 and consolidated in a zone of 90 points till 2:30. The sell-off came all the way from 17,420 to bring the close at 17,332, 58 points higher or 0.33%

BANK NIFTY opened with a gap-up at 39,307. The index started moving up and broke 39,500. However, severe selling came in and the index closed at 39,289, up by 173 points or 0.44%.

IT closed 1.6 % higher.

The US markets and the European markets moved down.

The Asian markets are trading lower. The Chinese markets remain closed.

The U.S. Futures and the European futures are trading higher.

SGX NIFTY is trading at 17,290 indicating a gap-down opening. 

NIFTY has supports at 17,280, 17,230 and 17,180. We can expect resistances at 17,360, 17,430 and 17,500.

BANK NIFTY has supports at 39,200, 39,000 and 38,700. Resistances are at 39,400, 39,600 and 40,000.

 Foreign Institutional Investors net-bought shares worth Rs 280 crores. Domestic Institutional Investors net-sold shares worth 40 crores.

INDIA VIX is ar 19.3.

Even though NIFTY closed higher, the day-candle is not at all promising. There was immense selling pressure and that led to a red candle with a long upper shadow. Our markets are not consolidating anywhere for a few days but we get immediate reversals. This is due to volatility and rapid global cues.

S&P VIX is above 30. VIX moving above 30 is a sign of danger to traders. Though it is in US, it will have an impact on the option sellers who hold overnight positions.

World Bank revised India’s GDP growth from 7.5% to 6.5%. This is not at all a good news for our markets.

We have a major event today; the US Jobs data. This will have a huge impact on the FED interest rate decision on 3rd November.

Crude oil inched higher with OPEC deciding to cut oil production. Keep an eye on the 100 USD mark.

Watch TCS today as the results will be out on Monday.

I will be watching 17,200 on the downside and 17,430 on the upside.

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