When is the Breakout Coming for NIFTY? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day with a gap-up at 21,694 and started falling. The level of 21,680 continued to be very important throughout the day. There was a quick 70-point fall at 2 PM and an equally fast recovery. NIFTY closed at 21,647, up by 28 points or 0.13%.

U.S. markets closed flat. The European markets closed in the red.

What to Expect Today?

Asian markets are mostly trading mixed, and Japan’s Nikkei continues to keep rallying.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in red at 21,720.

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

NIFTY has supports at 21,600, 21,480 and 21,400. We can expect resistances at 21,760, 21,835 and 21,900.

BANKNIFTY has supports at 47,420, 47,200 and 47,000. We can expect resistances at 47,600, 47,800 and 47,960.

In NIFTY, the highest put OI is at 21,000 and the highest call OI is at 21,700. PCR is bearish at 0.85.

In BANKNIFTY, the highest put OI is at 47,000 and one of the highest call OI is at 47,500. PCR is bearish at 0.80.

Foreign Institutional Investors net-bought shares worth Rs 1,607 crores. Domestic Institutional Investors net-sold shares worth Rs 865 crores.

INDIA VIX decreased to 12.76.

Over the last 12 days, the index has consolidated in a 300-point zone. NIFTY is still stuck in this zone, and I feel it is not a bad thing.

The U.S. markets closed flat yesterday, even though the Dow Jones just hit an all-time high yesterday.

Hence, there is still bullishness and money in the market. Domestic Institutional Investors are also sitting on top of extra money to invest in the market.

And now ahead of the weekend, we can expect NIFTY to continue consolidation with some intraday volatility. INDIA VIX is expected to increase today.

And now, we are at a bearish point in the market as per the option sellers' data. When the market moves up with strength, with the PCR continuing to be around 0.5-0.8, then we will be seeing a larger short covering rally up to 22,000.

We will be entering our new NIFTY trades and modifying BANKNIFTY trades today. You can check out our trades on the marketfeed app or our website!

Make sure that you tune in to The Stock Market Show at 7 PM on our YouTube channel. All the best for the day!