Rs 2/Litre Petrol Price Cut! Market to Open in Red - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started yesterday flat at 21,986. It took support at Wednesday’s low and moved back up. Till noon there was good positivity and the market took resistance at 22,200. NIFTY ended the day at 22,146, up by 149 points or 0.68%.

U.S. markets closed in the red. The European markets closed mixed.

What to Expect Today?

Asian markets are trading in the red.

The U.S. Futures are trading flat.

GIFT NIFTY is trading in red at 22,158.

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

NIFTY has supports at 21,980, 21,920, 21,800 and 21,680. We can expect resistances at 22,090, 22,200 and 22,300.

BANKNIFTY has supports at 46,700, 46,470 and 46,240. We can expect resistances at 46,980, 47,200 and 47,420.

Foreign Institutional Investors net-sold shares worth Rs 1,356.29 crores. Domestic Institutional Investors net-bought shares worth Rs 139 crores.

INDIA VIX dropped to 13.63.

The market gave a dead cat bounce yesterday, as it rallied up to the 22,200 mark. Mostly aggressive call option sellers in NIFTY had to square off their positions.

But like most other weeks, where Friday is where we see the true movement, today is expected to give a good correction.

The opening level will be around 22k, and yesterday’s low will first be tested. The trading range of 21,900-22,200 will be super important to judge the next direction.

Electoral bonds data has come out. Not expecting that to trigger the general market, can have a watch out for Airtel, DLF and Vedanta.

As the year ends, any dead cat bounce like yesterday’s would be an essential time for tax loss harvesting. Stocks can be bought back the next day if you want to.

Rs 2/litre petrol price reduction could affect oil marketing company stocks. Purely an election play, but should have been a long time ago.

Watching the levels on NIFTY which I said above. And 46,460 support in BANKNIFTY.

We will be continuing our BANKNIFTY trades, and entering fresh NIFTY trades today. You can check out our trades on the marketfeed app or our website!

All the best for the day!