Will Global Markets Create Trouble? - Pre Market Analysis Report
What Happened Yesterday?
NIFTY started the day at 19,526 with a 90-point gap-up and fell. It took support near Friday’s high in the first half of the day and bounced back slowly. After hitting a day-high towards the end, NIFTY closed at 19,528, up by 93 points or 0.48%.
BANK NIFTY started the day flat at 44,656 with a 200-point gap-up. Just like NIFTY, it fell and then bounced back with a V-shaped pattern to the day-high. BANK NIFTY closed at 44,578, up by 142 points or 0.32%.
U.S. markets were closed for Labour Day. The European markets closed slightly in the red.
What to Expect Today?
Asian markets are trading in the red.
The U.S. Futures are trading flat.
GIFT NIFTY is trading flat at 19,591.
All the factors combined indicate a flat to gap-down opening in the market.
NIFTY has supports at 19,500, 19,400 and 19,300. We can expect resistances at 19,560, 19,650 and 19,720.
BANK NIFTY has supports at 44,520, 44,277 and 44,150. Resistances are at 44,600, 44,800 and 45,000.
FIN NIFTY has supports at 19,730, 19,620, 19,500. We can expect resistances at 19,800, 19,900, 20,000.
NIFTY has the highest call OI build-up at 19,700. The highest put OI build-up is at 19,400. PCR is at 1.31.
BANK NIFTY has the highest call OI build-up at 45,000. The highest put OI build-up is at 44,000. PCR is at 1.18.
FINNIFTY has the highest call OI build-up at 19,900. The highest put OI buildup is at 19,600. PCR is at 0.96
Foreign Institutional Investors net-sold shares worth Rs 3,367 crores. Domestic Institutional Investors net-bought worth Rs 2,563 crores last week.
INDIA VIX fell to 10.96.
Markets impressively showed strength towards the end with a good recovery from day low. Even with the Doji candle on NIFTY, there was good buying from the bottom. BANK NIFTY also saw good buying.
But it looks like the global markets are also cooling down after their recent rally.
IT stocks are the hope for NIFTY today. They were rallying yesterday and kept NIFTY in the green. If they can hold some strength today, we can expect the market to hold strong and bounce after the gap down.
The U.S. markets were closed yesterday night, but the futures are still trading flat.
So a gap-down opening, some recovery and consolidation is what I personally expect in the market.
Let’s hope that yesterday’s lows are respected!
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