Pre-market analysis report on the merger of Tata Motors

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About Yesterday’s Market

The day began with NIFTY remaining steady at 21,411 and maintaining its position throughout. The trading occurred within a narrow range of only 80 points, staying between the levels of Saturday. The day concluded with NIFTY at 22,405, showing a modest increase of 27 points or 0.12%.

The U.S. markets ended the day with losses. The European markets ended the day with a combination of gains and losses.

 

Today’s Expectation

Asian markets are experiencing a decline in trading.

The U.S. futures are showing a slight decline.

The current trading price of GIFT NIFTY stands at 22,470, indicating a decline.

Based on the various factors, it appears that the market will open either flat or with a gap down.

The NIFTY has several support levels at different price points. There are potential resistances at 22,430, 22,500, and 22,600.

BANKNIFTY has support levels at 47,200, 46,950, and 46,700. There are potential resistances at 47,420, 47,600, and 47,800.

The support levels for FINNIFTY are at 20,810, 20,745, and 20,640. There may be some resistance levels to watch out for at 21,000, 21,080, and 21,200.

There appears to be a significant call Open Interest resistance at 22,400 in the NIFTY. There appears to be a significant level of put open interest support at 22,200. The PCR ratio indicates a positive sentiment at 1.25.

There appears to be significant call OI resistance at 47,500 in BANKNIFTY. There appears to be a significant level of put open interest support at 47,000. The PCR ratio indicates a positive sentiment at 1.21.

Shares worth Rs 564 crores were sold by Foreign Institutional Investors. Domestic Institutional Investors purchased shares worth Rs 3,542 crore.

The Indian VIX remained unchanged at 14.92.

Following a series of continuous rallies, markets in India and across the globe experienced a cooling off period yesterday.

This has instilled a sense of confidence in many players, leading them to adopt an overly aggressive approach. There are some significant open interest buildups at nearby strikes, which appear to be more aggressive than necessary.

During periods of elevated VIX, it is advisable to take advantage of premiums offered at distant strike prices and exercise caution rather than being overly aggressive. As the OI number increases, the significance of that level being broken will also grow.

Currently, there is significant put open interest accumulation at the 22,200 level. Just as we observed on the 22nd and 28th of February, there is a possibility of a significant decline if this level is breached.

Tata Motors has recently announced a demerger, resulting in the creation of two distinct entities for its passenger and commercial vehicle businesses. Investors are purchasing a new stake in Jio Financial Services.

Reliance surpassed the 3,000 milestone.

Today marks the expiration of FINNIFTY. Trade with caution based on the levels provided!

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