NIFTY to Open Flat. Will it Break Consolidation? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday at 24,230 with a gap-down and went up. The market showed strength from the morning and was on a clear uptrend. By the end of the day, the index barely closed flat. NIFTY ended the day at 24,406, down by 7 points or 0.03%.

U.S. markets closed mixed. European markets closed mixed.

What to Expect Today?

Asian markets are trading mostly in the green.

The U.S. Futures are trading in the green.

GIFT NIFTY is trading in small green at 24,478, up by 20 points.

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

NIFTY has supports at 24,375, 24,300, 24,220 and 24,170. We can expect resistances at 24,480, 24,650 and 24,800.

BANKNIFTY has supports at 50,700, 50,550 and 50,250. We can expect resistances at 51,260, 51,800 and 52,000.

Foreign Institutional Investors net-sold shares worth Rs 2,605 crores. Domestic Institutional Investors net-bought shares worth Rs 2,431 crores.

INDIA VIX increased to 12.61.

The market is still confused after the volatility of budget day. NIFTY has been trading between the budget candle for 2 days in a row. However, BANK NIFTY has kept falling.

Earnings season is now continuing, and the market is mostly reacting accordingly.

But the Dow Jones is down 3%, and traders across the world are panicking. The U.S. index is near recent support in daily charts, so just keep a watch out for global trends.

Otherwise, IT, FMCG, and Auto seem to be the strongest indices. If they keep strong while the market is down, we might see a long period of breakout over the coming months.

Last Friday is when we say a deep correction in the market. Let us watch today for a cue on next week.

As we discussed on Tuesday, NIFTY should keep above the 24,150 support zone for this current rally to continue. 24,650 can be looked at on the upper side!

Any breakout beyond these zones will be a confirmation of a fresh trend. But currently, there is no bear attack in the market.

We are entering fresh NIFTY trades and continuing our BANKNIFTY trades today. You can check out the marketfeed app or our website for updates!

All the best for the day!