Can The Rally Continue Amidst Global Negativity? Pre Market Analysis

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

Stocks

IndusInd Bank on Wednesday reported a nearly 69% year-on-year (YoY) rise in net profit for the December quarter at Rs 1,959 crore, which was slightly higher than ET Now poll estimate of Rs 1,950 crore. Net interest income in the quarter rose 19% YoY to Rs 4,495 crore.

Asian Paints will meet to consider and approve December quarter earnings. It is likely to report moderation in sales growth and a likely decline in volumes, analysts said.

Hindustan Unilever will meet to consider and approve December quarter earnings. The company is expected to record double-digit revenue growth.

HCL Technologies shares will trade ex-dividend for the Rs 10 dividend per share announced last week.

Persistent Systems reported 35% year-on-year (YoY) rise in net profit to Rs 237.9 crore for the quarter ended December. It clocked a 45.4% increase in revenue to Rs 2,169.3 crore.

What to Expect Today?

NIFTY opened flat at 18,075 yesterday. The index had an up-trending day and consolidated at the top. NIFTY closed at 18,165, up by 112 points or 0.62%.

BANK NIFTY opened flat at 42,288 and moved higher. 42,500 offered stiff resistance. The index closed at 42,458, up by 223 points or 0.53%.

IT moved up by 0.4%.

The US markets fell yesterday and the European markets closed flat to red.

The Asian markets are trading mixed with Nikkei in the red.

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

SGX NIFTY is trading at 18,135 indicating a gap-down opening.

NIFTY has supports at 18,145, 18,050, 17,930 and 17,860. We can expect resistances at 18,175,  18,230 and 18,350.

BANK NIFTY has supports at 42,385, 42,000 and 41,900. Resistances are at 42,500, 42,700 and 43,000.

NIFTY has the highest call OI build-up at 18,300. The highest put OI build-up also is at 18,000.

BANK NIFTY has the highest call OI build-up at 42,500. The highest put OI build-up is at 42,000.

INDIA VIX is at 14.4.

Foreign Institutional Investors net-sold shares worth Rs 300 crores. Domestic Institutional Investors net-bought shares worth 1,300 crores.

Our markets had an up-trending day and NIFTY’s price action was beautiful with a proper up-move and consolidation at the top. Had the global cues been favourable, we would have been able to see a fine breakout. The US markets dropped yesterday and let us see if our markets can tackle this.

As we discussed yesterday, there are a number of swing points that the market has to clear. The bulls will have a tough journey with multiple hurdles ahead. 

US PPI came out as expected. The retail sales figures were lower than the estimates. A 0.4% contraction was expected but the real data came out at -1.1%. This led to negativity.

Bank Nifty has a huge call OI build-up at 42,500. The index will find it hard to break the level but once broken, it can lead to a big short covering. This alone can fuel a 300 points rally in BNF. However, we will have to see if the bulls have the fuel left in them after the gap-down opening.

I will watch 18,050 on the downside in NIFTY. 18,130 can be watched on the upside.

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