Trendline Breakout? Pre Market Analysis

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

Stocks

Public sector lender Bank of Baroda recorded healthy advances growth for the March quarter, showing a growth of nearly 19% over the previous year period.

SBI board will meet on April 18 to decide on long term fund raising in single or multiple tranches of up to $2 billion through a public offer and/or private placement of senior unsecured notes.

Vedanta proposes to hold a meeting of its Committee of Directors on April 13 to consider the proposal for issuance of NCDs on a private placement basis.

JSW Steel posted a 13% growth in its consolidated crude steel production at 6.58 million tonne (MT) during the fourth quarter of FY23.

Zydus Lifesciences has received final approval from the United States Food and Drug Administration (USFDA) to manufacture and market Azithromycin Tablets.

What to Expect Today?

NIFTY opened with a small gap-up at 17,635, took support at 17,600 and rallied. The index started falling at 1 PM leading to a flat day. NIFTY closed at 17,624, up by 25 points or 0.14%.

BANK NIFTY opened flat at 41,136 and moved down. There was a bounce at 40,850 but it was short-lived. The index broke the previous support levels and closed at 40,834, down by 206 points or 0.5%.

FIN NIFTY opened flat at 18,491 and took support at 18,380. Though there was a recovery attempt, the rises were sold off and FIN NIFTY closed at 18,390, down by 71 points or 0.39%.

IT closed 0.96% higher.

The US markets closed flat to green after reopening yesterday. The European markets remained shut.

The Asian markets are trading well in the green.

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

SGX NIFTY is trading at 17,720.

All the factors combined indicate a flat to gap-up opening.

NIFTY has supports at 17,590, 17,550, 17,520 and 17,480. We can expect resistances at 17,690, 17,750, 17,800 and 17,940.

BANK NIFTY has supports at 40,870, 40,600, 40,400 and 40,000.  Resistances are at 41,070, 41,260 and 41,560.

FINNIFTY has supports at 18,340, 18,300 and 18,200. Resistances are at  18,450, 18,510, 18,630 and 18,680.

NIFTY has the highest call OI build-up at 18,000. The highest put OI build-up is at 17,600. PCR is 0.95.

BANK NIFTY has the highest call OI build-up at 41,000. The highest put OI build-up also is at 41,000.

FIN NIFTY has the highest call OI build-up at 18,500. The highest put OI build-up is at 18,200. 

INDIA VIX increased by 4% to 12.2.

Foreign Institutional Investors net-bought shares worth Rs 900 crores. Domestic Institutional Investors net-bought shares worth 350 crores.

Look at the long term day chart of NIFTY. You can see that there is a trendline connecting the highs since 1st December. The index is now at the resistance. But if you see FIN NIFTY chart, that trendline has been broken.

The European markets will be reopening after the long Easter holidays. Keep track of the market at 12:30.

It is FIN NIFTY expiry today. Since the VIX is just 12, the premium is too low. 18200-18550 Iron Condor will give just 1.5% returns for someone who entered at yesterday’s close.

There is no important data coming out today but Wednesday will see data pouring in:
India CPI

US CPI

Fed Minutes

India Industrial production
Manufacturing Output

TCS Results

As we discussed yesterday, a pull-back is fine since our market rallied for the last few days. It can be good for a sustained rally as well. But the candles should be small or it can go into the hands of bears.

Chinese inflation data came out better than expectations. This led to positivity in the Asian markets. Let us see if our markets can get inspired by the East.

I will watch 17,500 on the downside in NIFTY. 17,750 can be watched on the upside.

Follow us on the marketfeed app’s Signal section to get real-time updates from the market. All the best for the day!