Weekly Close - Pre Market Analysis

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

Stocks

In one of the major exits that the Street has seen, Rajesh Gopinathan will step down as TCS CEO with effect from 15 September. The company has appointed Krithivasan as the new CEO-designate.

Japanese Promoter company Sumitomo Wiring Systems has sold a nearly 5% stake in Samvardhana Motherson International Ltd through a block deal on Thursday.

Glenmark Life has announced an interim dividend of Rs 21 per equity share for the current financial year 2022-23.

Rail Vikas Nigam Limited emerged as the lowest bidder for the 11 KV line project worth Rs 111.85 crore.

SAIL board has declared an interim dividend of Rs 1 per share for the current financial year.

What to Expect Today?

NIFTY opened with a small gap-up at 16,995. The gap-up was quickly negated by the fall. The index took support at 16,850 and rallied. But the day was so volatile. Day-high was broken again and NIFTY closed flat at 16,986.

BANK NIFTY opened flat at 39,070 and fell to 38,620. There was a rally and 39K was crossed. It was another volatile expiry in the market and BNF closed at 39,133, up by 81 points or 0.21%.

IT closed 0.69% in the red.

The US markets and the European markets closed in the green.

The Asian markets are trading higher.

The U.S. Futures and European futures are trading flat.

SGX NIFTY is trading at 17,135 indicating a gap-up opening.

NIFTY has supports at 16,950, 16,910 and 16,850.  We can expect resistances at 17,050, 17,100 and 17,210.

BANK NIFTY has supports at 39,000, 38,750 and 38,620. Resistances are at 39,350, 39,450 and 39,700.

In fact, the index is on an important trend line which it has formed over the last 3 years (since 2020)! If this trendline is broken, we may see a major fall.

INDIA VIX is at 16.2.

Foreign Institutional Investors net-sold shares worth Rs 300  crores. Domestic Institutional Investors net-bought shares worth 2,050 crores.

It is a big gap-up we are expecting today after a gap. The global markets are trading well in the green after large banks have shown interest in supporting the First Republic Bank. 

Also, we can expect a 25 basis points hike only in this Fed meeting. The Fed decision will come out next week.

Will the recovery sustain is the question. There can also be profit booking fearing further down-moves. Nifty is already below 17K. We have not got a close below 17,000 in the weekly timeframe for a long period.

The European Central Bank came up with a 50 basis points interest rate hike. It was the sixth half bp hike in a row.

The bulls will try their best to take the markets above 17K today as it is weekly close but bears are in control of the market as of now.

I will watch 16,950 on the downside in NIFTY. 17,100 can be watched on the upside.

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