Will Volatility Increase this Week? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day with a gap-up at 21,717 and moved up. It could not break the 750 mark and soon saw a fall till Thursday’s high. After a 2 PM fall, the market eventually returned to the opening level. NIFTY closed at 21,710, up by 52 points or 0.24%.

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

What to Expect Today?

Asian markets are mostly trading in the red.

The U.S. Futures are trading in red.

GIFT NIFTY is trading in red at 21,765.

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

NIFTY has supports at 21,680, 21,600 and 21,500. We can expect resistances at 21,750, 21,800 and 21,840.

FINNIFTY has supports at 21,445, 21,380 and 21,300. We can expect resistances at 21,560 and 21,630.

In NIFTY, the highest put OI is at 21,500 and the highest call OI is at 21,800. PCR is bearish at 0.88.

In BANKNIFTY, the highest put OI is at 48,000 and one of the highest call OI is at 48,500. PCR is bearish at 0.74.

Last week, Foreign Institutional Investors net-bought shares worth Rs 3,289 crores. Domestic Institutional Investors net-sold shares worth Rs 7,295 crores.

INDIA VIX fell to 12.63.

NIFTY showed indecision with a Doji candle on Friday. It was the second one of the week after Monday. 

Axis Bank, Bajaj Finance and Airtel contributed the most to market movement last week, which ended with NIFTY closing flat.

There is still heavy FII Buying in the market with a total buying of Rs 3,300 crores. There was double the selling from DIIs on the other side.

When we are looking into the week, levels in NIFTY should be 21,500 and 21,800. 

When we are looking into this week, the major things to watch out for will be on Thursday. On Thursday, U.S. Inflation Data along with Infy, TCS and HDFC AMC results will be coming out.

There is good buying in the midcap sector, which may continue if the market consolidates.

Personally, watching Monday for some volatility and the VIX to move back up!

We will be modifying our NIFTY and BANKNIFTY trades today. You can check out our trades on 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!