Nifty Analysis 3rd April, 2024

Market Opening Analysis

Weak opening as indicated by GIFT Nifty. Nifty to open with a gap down of 100-115 points. Resilient Indian market as market managed to end on a flat note on 2^nd April despite weak global sentiments. Nifty formed a small doji candle, signalling indecisiveness among buyers and sellers. Considering there are no negative cues, the short term uptrend remains intact. Mid cap and small cap stocks to maintain their momentum.

Today mark’s the beginning of 3 day RBI MPC meeting. There is no expectation in change of rates, but increase in estimates for Friday. OPEC and OPEC+ Meeting today, members might be insisted for output cut. Fed Chairman to give Economic Outlook Forum today at 9:40 PM IST. China services PMI, Eurozone inflation rate and unemployment, US Crude oil inventory numbers are expected today. Crude oil prices boost up on accounts of stronger demand, Mideast tensions and US Manufacturing data.

Asian Markets

KOSPI, NIKKEI AND HangSeng are trading in the red, lost 43, 414 and 162 points respectively. Nikkei has been trading near its daily low. A similar gap down and consolidation is expected from the Indian Market.

US Market

Dow Jones, Nasdaq and S&P 500 shed 396, 156 and 37 points, as reaction to Personal Consumption Expenditure(PCE) data released on Friday, that rose 0.3%. No sell off in the broader market. Tesla tumbled after company raised prices for Model Y. Analyst expect sales number to tumble. The yield on the benchmark 10-year US Treasury rose by around 14 bps to 4.34 per cent following the release of manufacturing data, PMI.

Option Chain Analysis

Maximum call open interest can be seen at the strike price of 23000 of 1.97 lakhs, which is a key resistance in the short term. Significant call writing can be seen at 22500 and 22600, which added 42k and 27k contracts, this will act as immediate resistance. Maximum put open interest can be seen at 22000, which will act as a key support. Significant put writing at 22300 and 22200 which added 11k and 18k contract, this will act as immediate support.

On the upper level, 22512, 22536 and 22575 will act as resistance. On the downside, 22434, 22410 and 22371 will act as support. For the market to continue its upward movement, it must move above 22536.