Will IT Move Further Down? Pre Market Analysis

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

Stocks

HDFC announced a 35 basis points increase in its retail prime lending rate and now the minimum rate will be 8.65 per cent. The revised rates would be effective from Tuesday. HDFC has cumulatively increased its lending by 225 bps since May.

Ipca Laboratories has acquired an additional 6.53 per cent stake in Trophic Wellness (TWPL), which is engaged in manufacturing and marketing several SKUs of neutraceuticals under the brand name Nutricharge.

Ipca Laboratories has acquired an additional 6.53 per cent stake in Trophic Wellness (TWPL), which is engaged in manufacturing and marketing several SKUs of neutraceuticals under the brand name Nutricharge. With the above shares, the company now holds 58.88 per cent shareholding in TWPL.

Share India Securities has completed the sale of its entire stake in Share India Commodity Brokers after obtaining the valuation report and other requisite approvals. Consequently 'Share India Commodity Brokers would cease to be associate of the company.

SEPC board of directors on December 27 will consider a proposal to raise funds by issue of equity shares on rights basis to the existing shareholders of the company.

What to Expect?  

NIFTY opened flat at 18,288 and had an up-trending day. The up-move continued in the second half and the index closed at 18,420, up by 151 points or 0.83%.

BANK NIFTY opened with a small gap-up at 43,348 and had a choppy day. The index underperformed and closed at 43,414, up by 194 points or 0.45%.

IT moved down by 0.5%.

The US markets moved lower whereas the European markets closed in the green.

The Asian markets are trading lower.

The U.S. Futures and European futures are trading nearly 0.2% higher.

SGX NIFTY is trading at 18,450 indicating a flat opening.

NIFTY has supports at 18,390, 18,330 and 18,250. We can expect resistances at 18,440, 18,520 and 18,600.

BANK NIFTY has supports at 43,350, 43,240 and 43,000. Resistances are at 43,440, 43,600 and 43,885.

FINNIFTY has supports at 19,250, 19,200 and 19,100. Resistances are at 19,300, 19,390 and 19,470.

NIFTY has the highest call OI build-up at 19,000. The highest put OI build-up is at 18,300.

BANK NIFTY has the highest call OI build-up at 44,000. The highest put OI build-up is at 43,000.

FIN NIFTY has the highest call OI build-up at 19,400. The highest put OI build-up is at 19,200.

Foreign Institutional Investors net-sold shares worth Rs 600 crores. Domestic Institutional Investors net-bought shares worth 700 crores.

INDIA VIX is at 13.6.

Price action was clean yesterday giving an up-move but with a small correction at 12:30. However, the dip was bought into. 

NASDAQ keeps moving down and this is not good for our IT index which is falling from a high of 31,220. Watch 28,300 in the index. 1,500 and 3,200 are the major levels to watch Infosys and TCS.

Reliance is in the range of 2570-2610. The stock price moved up by 1.3%. 

As I said earlier, Bank Nifty underperformed. However, HDFC stayed strong and led to an up-trending day in Fin Nifty that closed more than 0.8% in the green. It is expiry day. I will be watching the range 19170-19370.

China kept the key interest rates unchanged for the fourth consecutive month. The Bank of Japan will come up with their monetary policy today. South Korea said they are not sure how swiftly inflation would cool down.

Germany PPI will be out today. Let us see if the European markets show any reaction to it and if that brings an impact on our price action.

If you are trading in Fin Nifty, consider the premium into account when entering positions.

I will be closely watching 18,330 on the downside and 18,520 on the upside in NIFTY.

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