All-time High! Can Rally Continue? Pre Market Analysis

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

Stocks

HCL Technology has signed a multi-year contract with Switzerland-based maintenance, repair and overhaul service provider SR Technics to digitally transform its operations.

Lupin said its Brazil-based unit has inked a pact to acquire rights nine products from a subsidiary of Bausch Health Companies Inc.

NBCC (India) said it has got work orders worth Rs 271.62 crore in projects of erstwhile realty firm Amrapali Group.

Dredging Corporation of India will foray into the foreign dredging market. The initiatives taken for setting our foot once again in foreign waters is likely to materialise. DCI has already been executing the dredging contract for Mongla Port, Bangladesh.

Filatex is planning a capex of Rs 300 crore over next 18 months towards installation of another 500 machines to meet the growing demand for products.

What to Expect?  

NIFTY opened with a gap-down at 18,455 and dropped by nearly 90 points. The index moved higher strongly and broke the all-time high. NIFTY closed at 18,563, up by 50 points or 0.27%.

BANK NIFTY opened with a gap-down at 42,837 and moved up. The index gave a sharp rally post 11 but profit booking kicked in. BNF closed flat at 43,020.

IT closed flat.

The US markets and the European markets closed deep in the red.

The Asian markets are trading higher except for NIKKEI.

The U.S. Futures and European futures are trading slightly in the green.

SGX NIFTY is trading at 18,665 indicating a gap-down opening.

NIFTY has supports at 18,530, 18,450 and 18,350. We can expect resistances at 18,610, 18,700 and 18,800.

BANK NIFTY has supports at 42,200, 42,000 and 41,850. Resistances are at 42,850, 42,620 and 42,500.

FINNIFTY has supports at 19,150, 19,080 and 19,000. Resistances are at 19,250, 19,280 and 19,350.

NIFTY has the highest call OI build-up at 19,000. The highest put OI build-up is at 18,500. 

BANK NIFTY has straddle at 43,000.

Foreign Institutional Investors net-bought shares worth Rs 1000 crores. Domestic Institutional Investors net-bought shares worth 100 crores.

INDIA VIX is at 13.6.

NIFTY hit all-time high yesterday. There was profit booking towards the end but the close was above the swing point of 18,530. Now that there is a chance for a gap-down opening, we will have to see if this swing point plays a role. If not, we have 18,500 and 18,450.

BNF may open below 43K and if we have a close above the level, it will be a positive price action. 

Reliance was the star of the day. The stock broke out of the resistance around 2670. Let us watch the stock.

The US markets moved down due to Covid protests and Apple falling. However, you can see that the Chinese markets are in green. Considering that, there is no reason why our markets should fall heavily from here. Let us see if the rally can continue.

It is FINNIFTY expiry today and the OI says 19,000-19,300 is the range.

Germany CPI will be released today.

I will be closely watching 18,450 on the downside and 18,610 on the upside.

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