109. Pre Market Analysis - May 20 , 2021
Markets closed in red after 2days of rally due to weak global clues .
Nifty fell 77.90 points , Sensex declined 290.69 points and Bank Nifty closed with a loss of 237.20 points.
Banking and Auto stocks are top sectors which dragged Nifty .
Reliance is the mother of Nifty and if it joined with Banking stocks then we can expect huge fall yesterday but yesterday Reliance gave support to Nifty.
FIIs and DIIs were both on selling side as FIIs sold 697.75 crores and DIIs sold 852.52 crores.
Yesterday after our markets closed , global markets fell drastically due to the crash in Crypto Currency.
China put some restrictions on Crypto currencies which was impacted all Currencies and every Currency fell more than 30% in few minutes and it impacted on stock markets.
Remember any impact on one market , even it is Commodities or Currencies or Bonds will impact other market as well so yesterday Currency crash was impacted on entire global markets.
Remember our markets wont react much because we already under performed on past days now slowly we are recovering so any fall happen in our markets then expect fast recovery also.
Coming to global markets :- Last night US and UK markets closed at lower and Currently Dow Jones , Nasdaq and UK futures are trading at lower.
Asian markets are mixed .
Yesterday SGX Nifty broke 15,000 but now it is above 15,000 and trading with just 9 points loss which is an fast recovery.
Coming to India :- Today our markets may open with flat based on SGX Nifty and global clues.
Last night the Dow recovered 500 point fall to 160 points Negative close and SGX Nifty 15,000 below to above and with this recovery everyone has an another doubt now , the crash which was happened in currencies and few people invested in commodities and the question is now will investors come with their money into stock market?
Today is an expiry and we are sitting with lot of news flow so as an options buyers its very difficult to handle the volatility today so trade only when you get perfect entry and options writers will lead the market today as CE premiums are higher compare to PE so expect some little bit fall or rang bound to eat the premiums.
The one who is looking for support and resistances based on OI data and Chart analysis :- Nifty may give pullbacks at 15,000 level and resistance at 15,125 which is an yesterdays high.
Bank Nifty any fall can be happen if it breaks 33,500 and next support 33,330 and resistance at 34,278.
All The Best , Trade With Discipline.
BONFIRETRADER