Can the Gap-up Sustain? Pre Market Analysis

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

Stocks

Vadilal Industry has clarified on reports that Bain Capital is looking to buy a stake in the company. It said there is no such information

Shares of JSW Steel and Dr Reddy's will be in focus today as the companies will turn ex-dividend.

Tata Communications arm has entered into a share purchase agreement to acquire remaining equity ownership of Oasis Smart Sim Europe SAS.

What to Expect Today?

NIFTY opened with a gap-up at 19,405 and moved up to take resistance at 19,435. It was a range-bound day but there was volatility. NF closed at 19,356, up by 24 points or 0.12%.

BANK NIFTY opened flat at 44,980 and showed some deviation from the general market. After volatile moves, the index closed at 44,680, down by 64 points or 0.14%.

IT moved down by 1.2%.

The US markets closed higher. The European markets also closed in the green.

The Asian markets are trading higher.

The U.S. Futures and European futures are trading flat to green.

GIFT NIFTY is trading 90 points higher at 19,490.

All the factors combined indicate a gap-up opening.

NIFTY has supports at 19,320, 19,265 and 19,200. We can expect resistances at 19,400, 19,435 and 19,520.

BANK NIFTY has supports at 44,800, 44,500 and 44,280. Resistances are at 44,950, 45,100, 45,370 and 45,660.

FIN NIFTY has supports at 20,000, 19,950 and 19,880. We can expect resistances at 20,100, 20,165, 20,250 and 20,315.

NIFTY has the highest call OI build-up at 19,400. The highest put OI build-up also is at 19,400. PCR is 0.7.

BANK NIFTY has the highest call OI build-up at 45,000. The highest put OI build-up also is at 45,000. PCR is 0.7.

FIN NIFTY has the highest call OI build-up at 20,200. The highest put OI build-up is at 20,000. PCR is 0.6. 

Foreign Institutional Investors net-bought shares worth Rs 600 crores. Domestic Institutional Investors net-bought shares worth 300 crores.

INDIA VIX is at 11.5.

There is positivity in the global markets. Let us see if there is an impact on our markets.  There has been some negativity in the price action in our markets. There will be a gap-up opening but we will have to see if this gap-up sustains.

Hope you remember how the expiry day was for option sellers on last Tuesday. Be careful while you are adjusting your positions.

For option buyers, it would have been a good day if you were able to switch the views yesterday. 

There was some divergence in BN and NF yesterday but overall price action was similar.

Germany inflation will be out today.

We have major events tomorrow. Watch the US markets closely tonight.

I will watch 19,265 on the downside in NIFTY. 19,435 can be watched on the upside.

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