113. Pre Market Analysis - May 26 , 2021
One fine day at some where , The running Tournament was happened and the distance of track is 10k.m and there is no time limit to reach the destination so few people run with a desire to reach their destination and few people reach to 5k.m and sat under tree to take deep breathe for sometime to continue the run and here the condition is Tournament participants is not individual , Every participant has a team like IPL team , as every one in the team should reach the destination if they want to win in tournament.
Lets connect above example with our Indian markets , Here everyone is expecting Nifty at ATH but few members are not supporting to Nifty to win the Tournament (to reach ATH).
As you can see yesterday all sectors performed well but everyone is shocking why Nifty is not reaching ATH , even Nifty advances 38 and declines just 11 and the reason is Few Weightage stocks are not supporting to Nifty.
Yesterday HDFC Twins and Reliance alone dragged 51 points in Nifty , due to under performance in weightage stocks so we cant expect Nifty to ATH .
As Nifty closed with again of just 11 points where we called it as flat closed day on yesterday , Sensex gained just 14 points and Bank Nifty fell 282 points which was taken deep breathe under roof .
FIIs bought 959.77 crores and DIIs sold 563.59 crores.
Today focus on BPCL and Berge paint ahead of their quarterly results.
Coming to Global markets :- Last night US and UK markets closed at lower and currently Dow Jones , Nasdaq and UK futures are trading with positive bias.
all Asian markets are trading at higher.
SGX Nifty is down by 51 points as of now.
Coming to India :- Today our markets may open with cautious due to SGX Nifty and global market clues.
We don't have any domestic news now so we will follow global news to make any move and consider the way Banking stocks under performance and last expiry of the may month as we knew many investors are adjusting their positions in F&O and these all reasons might drag the market but this is not selling pressure , this is just profit booking at higher levels so expect correction only as of now.
Today is an Wednesday so morning if any huge gap-down happen then expect immediate correction and if it is less gap-down then we may continue the fall for sometime then markets may consolidate till afternoon to eat premiums then they will make single move to any one side.
Options buyers its better to track weightage stocks and play according to that and today morning will be for options buyers and afternoon will be for options sellers so every options buyer try to stay away in the afternoon.
The one who is looking for support and resistances based on OI data and Chart analysis :- Nifty may take support at 15,134 and resistance at 15,327.
Bank Nifty had a resistance at 35,208 which is last todays high and support at 34,462 which is yesterdays low , any break with huge volume of yesterdays low then Bank Nifty may reach to 34k.
All The Best , Trade With Discipline.
BONFIRETRADER