Wall Street Falls - Pre Market Analysis Pre Market Analysis

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

Stocks

Bharat Electronics Ltd (BEL) has signed an MoU with Aeronautical Development Agency (ADA), DRDO, for the Advanced Medium Combat Aircraft (AMCA) programme. The MoU was announced on the sidelines of the “Bandhan” event held at Aero India 2023.

Hindustan Zinc said it will hold a meeting of the equity shareholders of the company on March 29 pursuant to the NCLT order in the matter of proposed scheme of arrangement between the company and its shareholders.

Lupin announced the launch of Lurasidone Hydrochloride Tablets in the US market. The tablets of various mg had estimated annual sales of $4.2 billion in the US.

Cyient announced a partnership with Thingtrax to enable manufacturers to increase efficiency and reduce costs. The partnership will enable global manufacturers to drive higher performance across their entire manufacturing operation through AI-powered data.

SBI has successfully raised Rs 4,544 crore non-convertible, taxable, perpetual, subordinated, unsecured, fully paid up Basel III compliant AT-1 bonds at a coupon of 8.20% per annum.

What to Expect Today?

NIFTY opened with a gap-up at 17,906, faced resistance at 17,925 and moved down. Support was taken at 17,820. There was a failed attempt of recovery and NIFTY closed at 17,827, down by 18 points or 0.1%.

BANK NIFTY opened flat at 40,796, took support at 40,600 and moved higher. However, there was resistance at 40,900 and moved down. The index took support at 40,600 again and closed at 40,674, down by 28 points or 0.07%.

FIN NIFTY opened with a small gap-up at 18,297 and moved higher. The index formed a top at 18,375 and gave a big fall to 18,225. FIN NIFTY closed at 18,262.

IT moved up by 0.9%.

The US markets fell heavily yesterday. The  European markets also closed in the red.

The Asian markets are trading lower.

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

SGX NIFTY is trading at 17,775 indicating a gap-down opening.

NIFTY has supports at 17,800, 17,770, 17,720 and 17,600. We can expect resistances at 17,910, 17,985, 18,035 and 18,135.

BANK NIFTY has supports at 40,600, 40,300 and 40,000. Resistances are at 40,750, 40,900 and 41,200.

NIFTY has the highest call OI build-up at 18,000. The highest put OI build-up is at 17,500.

BANK NIFTY has the highest call OI build-up at 41,500. The highest put OI build-up is at 40,000.

INDIA VIX spiked by nearly 5% to 14.

Foreign Institutional Investors net-bought shares worth Rs 500 crores. Domestic Institutional Investors also net-sold shares worth 200 crores.

There was uncertainty yesterday as there was Putin’s speech at 2:30 PM. Hope you remember what happened back in September 2022 when he talked about the war situation. Putin said that he is forced to suspend the nuclear pact with the US.

See how 18,245 is being protected in the hourly chart for FIN NIFTY. It was the spot where FIN NIFTY took a  bounce on 7th February, the first expiry of February. Let us watch this level.

The US markets fell heavily yesterday. It was the largest down-move of the year and the main reason could be the rise in the Services PMI. The figure came out at 50.2, the highest in eight months, putting an end to 7 months of contraction. Since the economic data is good, it means that there is a chance for further hikes. This led to the fall.

Be careful while holding overnight positions today as we have Fed minutes tonight. The minutes will give us clarity on the next actions of the Fed. 

NSE extended the interest rate derivatives trading hours to 5 PM. This is to match the timing with the underlying market. I know that many of you would be eager to know if there will be a similar extension in stock market timings as well. The latest update is that any change will take place gradually and NSE has sought feedback from the brokers regarding extending the cash market hours to 5 PM and futures timing to 11:55 PM.

I will watch 17,770 on the downside in NIFTY. 17,910 can be watched on the upside.

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