Quote on Pre-market comment for Thursday April 02nd by Kamlesh Jain , Research Analyst, Choice Broking
Quote on Pre-market comment for Thursday April 02nd by Kamlesh Jain , Research Analyst, Choice Broking
Indian equity markets are expected to begin the April 2 session on a weak footing. The GIFT Nifty is currently trading around 22,447, down approximately 430 points, indicating a negative start for the benchmark indices.
However, in the previous session, The Nifty 50 began the session on a bullish note, opening with a significant gap-up at 22,899 and climbing to an intraday peak of 22,941.30 in the first half. However, the momentum faded later in the day as profit booking set in, pulling the index down to a low of 22,618.60. Despite this late decline, the index ended the session higher at 22,679.40, posting a gain of 348 points or 1.56% compared to the previous close. On the daily chart, the early gap-up was fully erased by selling pressure in the latter half, suggesting supply at elevated levels and signalling caution around important resistance areas. From a technical perspective, immediate support for the index is placed in the 22,250-22,300 range, while resistance is observed between 22,700 and 22,750 levels.
The Bank Nifty index had experienced a highly volatile session. It started yesterday’s session with a strong gap-up of 1,158.55 points at 51,433.90, but soon after the opening, profit booking dragged it down to an intraday low of 51,133.55. The index then witnessed a rebound driven by buying interest, pushing it up to an intraday high of 52,025.85. However, selling pressure resurfaced at higher levels, limiting further gains, and the index eventually settled at 51,448.65, ending the day up by 1,173.30 points or 2.33%. On the daily chart, a Doji-like candlestick pattern was formed, signaling market indecision. This suggests traders should exercise caution and wait for a clearer directional signal before taking fresh positions. From a technical perspective, immediate support for the index is placed in the 50,000-50,100 range, while resistance is observed in the 51,500–51,600 zone.
Foreign Institutional Investors (FIIs) started the new financial year on a negative footing, continuing as net sellers by divesting equities worth ?8,331 crore on April 1. Meanwhile, Domestic Institutional Investors (DIIs) helped counterbalance the outflows to some extent, investing more than Rs.7,000 crore in equities.
Amid ongoing geopolitical issues, traders should remain more vigilant near crucial demand and supply zones and look for a clear break from either zone before entering new trades.
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