HDFC Bank ADR up 4%. NIFTY to Open 100 Points in Green - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday at 24,236 with a gap-up and fell. After a fall of close to 160 points, it recovered nearly half of it. Mostly there was sideways movement after this. NIFTY ended the day at 24,123, down by 18 points or 0.07%.

U.S. markets closed in green, with NASDAQ and S&P 500 moving back to all-time. The European markets closed in the red.

What to Expect Today?

Asian markets are trading in the green.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in green at 24,329, up by 99 points.

All the factors combined indicate a gap-up opening in the market.

NIFTY has supports at 24,050, 23,910 and 23,800. We can expect resistances at 24,200, 24,300 and 24,500.

BANKNIFTY has supports at 52,000, 51,800 and 51,600. We can expect resistances at 52,390, 52,620 and 53,000. 

Foreign Institutional Investors net-sold shares worth Rs 2,000 crores. Domestic Institutional Investors net-bought shares worth Rs 648 crores.

INDIA VIX is now at 13.64.

The market is now comfortably trading above the 24k mark. In today’s gap-up, we will see an opening near yesterday’s level.

HDFC Bank is near a 52-week high and contributed most to NIFTY’s move yesterday. The bank’s ADR is also up more than 4% on the New York Stock Exchange after it reported lower FII Holding for last quarter. This is in line with the MSCI Index's requirement of keeping FII shareholding below 55.5% and could see higher weightage to the Morgan Stanley index.

Reliance is creating a flag pattern after the recent rally. If the trendline is broken, we can see more rallies on the upper side.

NIFTY IT is also rallying ahead of the results season. TCS results will come out on July 11th. The index is 3% away from its 52-week high.

Fed Chair Jerome Powell also said in a speech yesterday that rate cuts can only be expected once inflation is successfully kept around 2% in the U.S. Further minutes of last month’s FOMC meeting will be out tonight.

Otherwise, the only things to look forward to are price-action trades in the market and HDFC Bank moves!

We will be continuing our BANKNIFTY trades and NIFTY trades today. You can check out our marketfeed app or our website for new trades!

All the best for the day!