Nifty Eyes Gap-Up Open; Oil Marketing Cos Watch

Pre-open cues are positive. GIFT Nifty is trading about 170 points higher, and Brent crude is down around 2.4% on supportive geopolitical news, which points to a gap-up start. On Friday Nifty extended its upside, respected the pivot cluster and hit the first hurdle at 23,040. It came close to the second hurdle at 23,155 before settling near 23,053. The inverse Head & Shoulders breakout remains intact. RSI near 60 has cooled from the overbought zone but stays above the midline, so momentum is still positive. For the day, 23,050-23,000 is the pivot cluster. A move below it could slightly weaken momentum, with 22,935 and 22,800 as supports. On the upside, 23,150 is the next resistance, and a gap-up open could bring the pattern’s measured-move reference near 23,240 into play. The first half-hour of trade will be important. With Brent trading lower, oil marketing companies such as BPCL,

and HPCL are worth observing, since lower crude generally eases input costs for them. Their margins also depend on fuel pricing, so crude’s direction remains the key factor. Falling crude prices are generally positive for oil marketing companies, but their margins also depend on fuel pricing, so track crude’s direction along with price action. Disclaimer: This is for educational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions. SEBI Registered Research Analyst — INH000025212.