Can The Global Cues Lift And Reverse Our Market? Pre Market Analysis

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

Stocks

Tata Consultancy Services board will meet to consider and approve earnings for the quarter and 9 months ended December. The company is expected to see moderate growth in revenue due to the impact of furloughs and year-end holidays. But, profitability will improve sequentially on better utilisation and lower attrition.

Sobha Ltd reported a 36% YoY growth in sales bookings to Rs 1,424.7 crore for the quarter ended December on strong revival in demand. This is the highest-ever quarterly sales bookings in the quarter in terms of both volume and value. The average price realisation improved 22% on year to Rs 9,650 per square feet.

Kalyan Jewellers which runs a chain of jewellery showrooms across India and the Middle East, reported consolidated revenue growth of 13% YoY in the December quarter. The company is yet to declare its full quarterly results.

Punjab & Sind Bank is expected to cross Rs 2 lakh crore business milestone soon on the back of robust growth in loans, managing director Swarup Kumar Saha said.

Jindal Steel and Power will invest up to Rs 1,500 crore to make recently-acquired Monnet Power operational, Managing Director Bimlendra Jha said. The investment will be made over the next 12 to 18 months, he said.

What to Expect Today?

NIFTY opened flat at 18,013 on Friday. It was another down-trending day. NIFTY took support at 17,800 and closed at 17,859, down by 133 points or 0.74%.

BANK NIFTY opened at 42,597, moved down and consolidated at 42,250. The level was broken and the index closed at 42,189, down by 420 points or 0.99%.

IT moved down by 2%.

The US markets and the European markets rallied.

The Asian markets are trading well in the green.

The U.S. Futures and European futures are trading higher.

SGX NIFTY is trading at 18,085 indicating a gap-up opening.

NIFTY has supports at 17,800, 17,660 and 17,500. We can expect resistances at 17,940, 18,025 and 18,125.

BANK NIFTY has supports at 41,920, 41,660 and 41,500. Resistances are at 42,385, 42,625 and 42,855.

FIN NIFTY has supports at 18685, 18,590 and 18,500. Resistances are at 18,900, 19,000 and 19,100.

NIFTY has the highest call OI build-up at 18,200. The highest put OI build-up is at 18,000.

BANK NIFTY has the highest call OI build-up at 43,500. The highest put OI build-up is at 43,000.

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

INDIA VIX is at 15.

Foreign Institutional Investors net-sold shares worth Rs 2900 crores. Domestic Institutional Investors net-bought shares worth 1100 crores.

The reason for the Friday up-move in the US markets is a survey that said there is a high probability that inflation may ease further and the rate hikes are working. More jobs were added in December. The key point to note in the Jobs data is that the wages are growing at a slower rate, 0.3% whereas the estimate was 0.4%.  This is good for the economy as far as inflation is concerned. How the market reacts in the first two hours tomorrow will be crucial.

As discussed in the Dalal street article, uncertainty ahead of the Fed decision could have been the reason for the fall on Wednesday. However, the fall continued on Thursday even when the global markets were in positive territory. This confirmed that Fed minutes had a minor role and established bearishness in the market.  

Still, the bulls have a last hope. 17,800-18,260 zone can be considered a consolidation area. As the close happened above 17,800, the bulls can give an attempt to take the markets higher. If the level is broken, the bears will completely take over.

It is three black crows pattern formed in NIFTY. This is a reversal pattern and we can expect the down-trend to continue. As we mentioned earlier, 17,800 has to be watched. This is the last resort for the bulls.

China has reopened its borders for the first time since 2020. This boosted the positivity in the Asian markets.

TCS will announce their quarterly results today. The earnings season will be the highlight this week along with inflation reports.

I will watch 17,800 on the downside in NIFTY. 18,000 can be watched on the upside.

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