800 Point Gap-up! GIFT NIFTY Above 23,500! - Pre-Market Analysis Report

Welcome back to Pre-Market Reports by marketfeed. We deeply apologies for the missed articles in between. See you here every single day from now for a simple and honest market analysis at 8:30 AM!

What Happened Yesterday?

GIFT NIFTY is going crazy with a 3.5% gap-up. Read more to find out why!

NIFTY started last Monday with a gap-up at an all-time high of 23,038 and saw profit booking. All 5 trading days last week closed with red candles. NIFTY ended Friday at 22,530, down by 426 points or 1.83% for the week.

U.S. markets closed in green. The European markets also closed in the green.

What to Expect Today?

Asian markets are trading in the green.

The U.S. Futures are trading in the green.

GIFT NIFTY is trading in super green at 23,500, up by 805 points or 3.57%.

All the factors combined indicate a huge gap-up opening in the market.

NIFTY has supports at 22,600, 22,510 and 22,350. We can expect resistances at 22,710, 22,780 and 22,900. Watch out for 23,500 and 23,600.

In NIFTY, there is a high call OI resistance at the 23,000 level. Put sellers are active at 22,500. PCR is 0.76.

In BANKNIFTY, there are contracts built all over. There is a high call OI resistance at 50,000. The nearest put option support is at 48,500.

Last week, Foreign Institutional Investors net-sold shares worth Rs 7,754 crores. Domestic Institutional Investors net-bought shares worth Rs 14,935 crores.

INDIA VIX had increased 13% last week to 24.60.

The market is going to go crazy today after the exit poll results on Friday night. The numbers showed high confidence that BJP and allies would win 370+ seats in the current Lok Sabha elections.

Adani stocks had performed well on Friday as if they knew this rally would come on Monday. Expect BANKNIFTY also to go crazy today.

Call option sellers are going to be blown out of the park, but hopefully, a crash in VIX will limit losses to a certain extent. We stayed out of the market this week due to high volatility and low liquidity.

Official election results will be announced tomorrow. The market will continue to be volatile. Do not take aggressive positions today, as profit booking can hit any time.

As we had said earlier, the Fib retracement level of 22,415 turned out to be a game-changer in the last 2 weeks of the market. Once that was broken, the market started going crazy.

We will be continuing to stay out of trading today. You can check out our marketfeed app or our website by Thursday for new trades!

All the best for the day!