101. Pre Market Analysis - May 07 , 2021
Markets shot up in the afternoon with a help of IT , Metal , Auto and select FMCG stocks.
Nifty gained 106.90 points and Sensex rallied 727.21 points and Bank Nifty closed in flat by climbing 44.10 points.
After many days FIIs turned to positive by pumping 1222.58 crores and DIIs sold 632.51 crores.
Nifty tried many times to break the area of 14,900 to 15,000 and again we are near to that level and this time if we breaks then we may sit at ATH in coming days but there is very less chances to sit at ATH because the chances of reversal is more due to one reason that is corona cases, if we get a solution for that then we may rally until that expect some range bound moves or consolidation at mentioned levels.
Today Nifty stocks HDFC , Ultra Tech cement are set to declare their results .
Hero MotoCorp results was not good but still it appreciated due to huge short covering.
Even Tata Consumer came with bad results so expect some under performance on these stocks.
Coming to global markets :- After one week all US indices closed in positive and Dow Jones closed at ATH and UK markets are closed in positive.
Currently Dow Jones , Nasdaq and UK futures are trading at higher.
All Asian markets are trading at higher.
SGX Nifty is up by 76 points as of now.
Coming to India :- We may continue gap-up opening on second straight day based on SGX Nifty and global clues.
If our markets open with gap-up then expect buy on dips market in the first one hour and after that moves will be decided based on individual sectors.
Banking stocks - HDFC bank - 1440 to 1450 , Kotak Bank -1805 , ICICI bank -613 ,Axis Bank -716 , SBIN -360 levels are very crucial towards upside and any of these levels taken out will be an open gates for free rally on banking stocks and Bank Nifty.
If Bank Nifty holds above 33,000 today then we may see further rally towards upside.
Today is an Friday so don't try to add new position for holding because over night positions may blow your portfolio.
Call side Premiums are vey high compare to put side so except some wild swings to adjust the premiums.
The one who is looking for support and resistances based on OI data and chart analysis :- Nifty had a crucial area at 14,900 to 15,000 towards upside and support at 14,620.
Bank Nifty had a resistance at 33,000 and next will be 33,370 and support at 32,580.
All The Best , Trade With Discipline.
BONFIRETRADER