103. Pre Market Analysis - May 11 , 2021
Markets continued the gains for the fourth consecutive session.
Nifty gained 119.20 points , Sensex rallied 295.94 points and Bank Nifty raised 237.90 points.
As usual Metal stocks out performed.
Pharma , selective auto and Banking stocks performed well and still some weightage stocks are under performing like Reliance , Infosys , Axis Bank.
FIIs bought 583.69 crores and DIIs sold 476.26 crores.
Nifty came near to 15,000 and we already knew Nifty is moving in between the range of 15,000 to 14,200 from many weeks and today is an make or break level but remember still we are sitting with Covid infection so don't expect markets at ATH as of now , until we get a solution for this infection, so till that expect this wide range only so expect sharp reversal today or consolidation below 14,900.
Many options sellers did short straddle at 14,900 and we knew the upside moves are limit because we already reached to 14,900 to 15,000 area so markets now consolidate or fall from that level.
Metal and Pharma stocks may continue the rally but banking stocks and Reliance may take time to kick start to fly.
Coming to global markets :- US markets closed at lower on last night and UK markets mixed.
Currently Dow jones , Nasdaq and UK futures are trading at lower.
Most of the Asian markets are negative.
SGX Nifty is down by 220 points as of now.
Coming to India :- Today we may see huge gap-down in our markets based on SGX Nifty and global markets clues.
While writing the 6th and 7th point , we haven't seen global markets update but now we checked for the update and they are trading at lower and mainly Dow jones is trading lower which is the Father of stock market where our Indian market always follow Dow jones so sellers take advantage of global clues and for sure they will bring our markets down.
Now there is no way to expect at ATH and we already standing at resistance where sellers are ready to pull back our markets and with global markets so expect sharp reversal towards downside from 14,900 level.
Any huge gap-down is avoidable to take trades in the opening hours and expect some short covering in the afternoon session and mainly Thursday is holiday so this week expiry will end by tomorrow so expect huge erosion with wild swings in the afternoon ,beginners better to stay away in afternoon.
Any fall more than 2% will be an opportunity to buy at lower level so investors and short term traders try to buy at every lower level of selected stocks which is damaged in this pandemic.
The one who is looking for support and resistance based on OI data and Chart analysis :- As usual Nifty 14,900 will be a resistance for this week and 14,756 may protect the Nifty today , if it breaks then fall will continue.
Bank Nifty slowly moving with Nifty even few weightage stocks are under performing and now Nifty is ready to fall so Bank Nifty will contribute more percentage in this fall and expect some pull back at 32,319.
All The Best , Trade With Discipline.