BANKNIFTY Near 200-EMA. What Unfolds for Monthly Expiry? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day with a gap-up at 21,716 and tried to consolidate. But after the first hour, there were heavy red candles one after another. Major supports were broken, then consolidated for 20 minutes, and this pattern repeated. 

One of the biggest intraday falls in recent times, NIFTY ended the day at 21,238, down by 333 points or 1.54%.

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

What to Expect Today?

Asian markets are trading in the red.

The U.S. Futures are trading flat.

GIFT NIFTY is trading flat at 21,224.

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

NIFTY has supports at 21,190, 21,120 and 21,000. We can expect resistances at 21,280, 21,340 and 21,480.

In NIFTY, one of the highest put OIs is at 21,000 and one of the highest call OIs is at 21,500. PCR is bearish at 0.63.

BANKNIFTY has supports at 44,900, 44,600 and 44,280. We can expect resistances at 45,230, 45,470 and 45,635.

In BANKNIFTY, one of the highest put OIs is at 45,000 and one of the highest call OIs is at 46,000. PCR is bearish at 0.50.

Foreign Institutional Investors net-sold shares worth Rs -3,115 crores. Domestic Institutional Investors net-bought shares worth Rs +214 crores.

INDIA VIX increased to 14.85.

A heavy correction in the market after the gap-up is what we saw yesterday. All BANKNIFTY stocks except ICICI Bank(+2%) fell. A few healthcare stocks like Cipla & Dr Reddy, and Airtel kept green in NIFTY.

But the most surprising part was the non-stop fall and the continuing repetition. BANKNIFTY(BNF) continued to fall yesterday. HDFC Bank alone has contributed a 3,000-point fall to BNF since last Wednesday.

The gap-up was so massive in NIFTY yesterday, that it gave some hope. But this was short-lived. There was no follow-up on the upper side, and soon the market comfortably broke the previous day’s lows. 

Tomorrow is the monthly expiry for the January series in both NIFTY and BANKNIFTY. The next important historical support of 44,600 in BNF is also where the 200-day EMA is. 

But let’s hope that the index will not fall below even as the gap from 1st December is also filled.

This week has been in really good profits for marketfeed strategies as the market kept following a single direction. Getting back up well from last week’s craziness.

Will start adding more than the usual quantity of NIFTYBeEs and BankBeEs in the fall. 

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