Flat Opening in NIFTY. Election Counting Volatility in Market! - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday with a huge gap-up at 23,338 and saw profit booking. The first 5-minute candle fell almost 200 points. Throughout the day, the market slowly recovered back to the day high. NIFTY ended the day at 23,263, up by 733 points or 3.25% for the week.

U.S. markets closed mixed. The European markets also closed mixed.

What to Expect Today?

Asian markets are trading mostly in slight red.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in red at 23,441, down by 10 points.

All the factors combined indicate a flat opening in the market.

NIFTY has supports at 23,200, 23,095, 23,000. We can expect resistances at 23,300, 23,400, 23,500. 

FINNIFTY has supports at 22,570, 22,430 and 22,270. We can expect resistances at 22,700, 22,800 and 22,900. 

In NIFTY, there is high call OI resistance at 23,500 and 24,000. Put sellers are active at 23,000. PCR is 0.89.

In FINNIFTY and BANKNIFTY, there are no high contract buildups near the spot price. PCRs indicate that more call options are being sold in both indices.

Foreign Institutional Investors net-bought shares worth Rs 6,850 crores. Domestic Institutional Investors net-sold shares worth Rs 1,913 crores.

INDIA VIX crashed 15% to 20.93.

The market was crazy yesterday as expected. It crashed down after the initial gap-up opening, but then went back up slowly. 

BANKNIFTY closed at the day-high and has to be watched again today.

And today is the vote counting day. Expecting market volatility with a further crash in VIX, which could trap option buyers.

In NIFTY, 23,500 is an important level to watch. High resistance is expected at that level.

On the lower side, do watch 23,200 and 23,100 in NIFTY. 

We will be continuing to stay out of trading today. You can check out our marketfeed app or our website by Thursday for new trades!

All the best for the day!