Will the Bears Make Their Move? – Report on Pre-Market Analysis

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About Yesterday

NIFTY was turbulent and opened the day flat at 21,747. The previous day’s low was broken at around eleven in the morning, but the index recovered from there. The 21,800 level was where resistance was discovered. NIFTY gained 64 points, or 0.3%, to conclude the day at 21,782.

US markets ended the day mixed. The markets in Europe closed lower.

 

Expectations

Most Asian markets are closed on Chinese New Year’s Day.

The U.S. Futures market is not moving.

At 21,918, the GIFT NIFTY is currently trading higher.

When taken together, all the indicators point to a flat to gap-up opening in the market.

Supports for NIFTY are at 21,750, 21,640, and 21,580. Resistances are likely to be found at 21,800, 21,955, and 22,080.

The supports for BANKNIFTY are at 45,560, 45,340, and 45,230. Resistances are likely to be found at 46,000, 46,240, 46,500, and 46,950.

The greatest call OI resistance in NIFTY is 22,000 points. The maximum estimated OI support to be 21,500. At 0.78, PCR is neutral.

There is good call OI resistance in BANKNIFTY at 46,000. At 45,000, there is a decent put OI support. At 0.85, PCR is bearish.

Foreign Institutional Investors sold shares for a net total of Rs 5,872 crores last week. The net purchase price of shares by domestic institutional investors was Rs 5,326 crores.

INDIA VIX remained unchanged at 15.4.

NIFTY has located a pleasant area in the range of 21,600 and 22,100. It has been trading in this 500-point range for several weeks. The current tendency is volatility mixed with consolidation.

Both the FINNIFTY and BANK NIFTY are still trading close to their 200-EMA. Even so, SBI has experienced three consecutive days of all-time highs. HDFC Bank is still being humiliated.

Both the IT index and reliance are still strong. But HDFCBank is not strong at all.

The figures on inflation in India will be released today. The governor of the Reserve Bank of India noted that the main reason there hasn’t been an interest rate drop is that inflation hasn’t yet reached their target of 4%. Be mindful of this information today.

The bulls, in my opinion, are just waiting until the appropriate moment. The market is still only one to two percent off its all-time highs. And if today’s inflation report is good, the breakthrough may occur by the end of the week or even earlier.

 

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