Gap-Up. What Next? Pre Market Analysis

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

Stocks

Lupin has announced the successful completion of an inspection carried out by the UK Medicines and Healthcare products Regulatory Agency at its Pithampur facilities in India. Also, the US FDA has completed a Post-marketing Adverse Drug Experience (PADE) inspection of the company's operations. The inspection closed with no observations.

One97 Communications said its subsidiary Paytm Payments Services Ltd (PPSL) received an extension from the Reserve Bank of India (RBI) to resubmit its application for a payment aggregator (PA) licence.

M&M is increasing its stake in Mahindra Aerospace to 100% from 91.59%.

Karur Vysya bank has executed an agreement with SBI Life Insurance Company, as an additional bancassurance partner in the life insurance category.

Bharti Airtel announced that its Ultra-fast 5G Plus is now available across 500 cities in the country.

What to Expect Today?

NIFTY opened flat at 17,095 on Friday and traded in a wide range in the first half. There was a big fall in the second half and NIFTY closed at 16,945, down by 132 points or 0.77%.

BANK NIFTY opened flat at 39,763 and gave an up-move at 11:00 after consolidating. But there was a reversal and the index fell heavily in the second half. BNF closed at 39,395, down by 222 points or 0.56%.

IT closed 0.23% lower.

The US markets closed in the green whereas the European markets closed in the red.

The Asian markets are trading mixed, mostly lower. Nikkei is trading in the green.

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

SGX NIFTY is trading at 17,000 indicating a gap-up opening.

NIFTY has supports at 16,900, 16,830 and 16,750. We can expect resistances at 16,970, 17,090, 17,160 and 17,207.

BANK NIFTY has supports at 39,160, 39,000 and 38,600. Resistances are at 39,600, 39,730 and 40,000.

FINNIFTY has supports at 17,550, 17,500 and 17,425. Resistances are at 17,690, 17,770 and 17,860.

NIFTY has the highest call OI build-up at 17,100. The highest put OI build-up is at 16,500.

BANK NIFTY has the highest call OI build-up at 40,000. The highest put OI build-up is at 39,500. 

FIN NIFTY has the highest call OI build-up at 18,000. The highest put OI build-up is at 17,000.

INDIA VIX spiked by 5% to 15.2.

Foreign Institutional Investors net-sold shares worth Rs 1,700  crores. Domestic Institutional Investors net-bought shares worth 2,600 crores.

The weekly candle has shadows on either side. Anyway, it is bearish and the market has broken the long-term support of 17,094, the swing low formed in September.

Stay updated on news regarding the Banking crisis. The current status is that the US government has assured safety to all investors. Credit Default Swaps saw a jump in the last few days. The US probe against UBS and Credit Suisse to find out if there was any help provided to Russia to evade financial sanctions has to be followed closely.

The sell-off we saw towards the end of the previous week does not look good. The close is at the low. The pace was too high looking at the way the bulls tried to take the market up from Monday and bears covering the swing points without proper support taken anywhere.

STT will be hiked by 25% from 0.05% to 0.062%. There was confusion when there was an error in the news that circulated first and it has been clarified now. This will be a hit for the scalpers with bigger capital.

We are expecting a gap-up today seeing Sgx Nifty and the up-move in Wall Street on Friday. Will that gap-up be sold into is the question. To see proper short covering this week, 17,207 has to be crossed. Crossing 16,830 will be a big hit to the bulls. 16,900 is supposed to give a bounce in the daily time-frame.

I will watch 16,900 on the downside in NIFTY. 17,090 can be watched on the upside.

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