U.S. Markets in Bright Green. 22,500 Next for NIFTY? - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day flat at 21,090 and moved down. The week’s low was broken, and it was around 11 AM when the rally started from day-low. A 350+ point move was seen, and the index touched an all-time high by closing time. NIFTY closed the day at 22,217, up by 162 points or 0.74%.

U.S. markets closed in good green. The European markets closed in the green.

What to Expect Today?

Asian markets are trading mostly in green.

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

GIFT NIFTY is trading in green at 22,310.

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

NIFTY has supports at 22,175, 22,080 and 22,020. We can expect resistances at 22,250, 22,300 and 22,350.

BANKNIFTY has supports at 46,950, 46,700 and 46,470. We can expect resistances at 47,200, 47,420 and 47,600.

In NIFTY, there is high call OI resistance at 23,000. There is a high put OI support at 22,000. PCR is bearish at 0.89.

Foreign Institutional Investors net-sold shares worth Rs -1,410 crores. Domestic Institutional Investors net-bought shares worth Rs 1,823 crores.

INDIA VIX cooled to 15.19.

There was widespread buying across all sectors except financial stocks in the day. ITC, Reliance and TCS gave the best contributions. Auto and IT indices gave big moves!

Usually, Fridays are when markets give a breakout and move up. All the tension in the market through the week with option sellers, option buyers and major expiries vanish on this day and a rally happens.

Fed Minutes shows that a further rate hike is not possible. But there is no rush to begin rate cuts. Nvidia’s sales surprised the U.S. market and the stock moved up 15% in just yesterday’s session! 

U.S. markets closed in bright green, with the NASDAQ index now just 1% away from all-time highs. Look out for IT stocks performing in India too!

India’s monetary policy committee said that rate cuts would have to be cautious, due to food inflation continuing. But the markets are enjoying it the way it is.

When NIFTY created a breakout above 22,125 earlier this week, there was a high chance of the index hitting 22,500. And till there, we can expect a good move in the index.

After the gap-up today, let us see if the strength sustains. FII selling can continue as U.S. markets and large caps perform well.

We will enter fresh NIFTY trades and modify our BANK NIFTY trades today. You can check out our trades on the marketfeed app or our website!

All the best for the day!