119. Pre Market Analysis - June 03 , 2021
Last 45 minutes rally made Indian markets to close at flat.
Where as Nifty closed with a gain of just 1.35 points , Sensex was down by 85.40 points and Bank Nifty was up by 63.55 points only.
Nifty and Bank Nifty started falling slowly from the morning and went to long wide range consolidation and we already said yesterday we are at ATH but not to expect big fall , we told to just expect minor corrections to trap the retailers and that is what happening in our markets right now, the people who think that it is sell on rise market and shorted they might be struck with huge positions by placing orders at days low or somewhere end and after that markets went to consolidation then last 45 minutes due to huge short covering markets moved higher and the one who struck with selling order they might end up with huge loss, this is how retailers loose their money .
The only reason for last 45 minutes rally in our markets is just because of Reliance as it shot up 1.5% in last 45 minutes and after seeing that rally everyone got panic so started short covering , at the same time banking stocks also started short covering which helped to Nifty to close at flat.
Reason for Reliance rally in last hour due to annual reports hope and after market hours they declared good results so expect some action on Reliance so Reliance performance may lead Nifty today.
As usual SBIN is supporting to Bank Nifty .
Many people are worrying why ITC is falling even came with good results , the main reason due to declaration of dividend their share price got reduced .
FIIs and DIIs were both on buying side, as FIIs bought 921.10 crores and DIIs bought 241.76 crores , it is enough for us to understand that markets are still in bullish mode.
PSU Banks performed well ahead of RBI policy decisions by tomorrow about interest rates and hope they will say status quo only which is positive for banking stocks.
Coming to Global markets :- Last night U.S and U.K markets closed higher and Currently Dow Jones , Nasdaq and U.K futures are trading at higher.
Asian markets are mixed
SGX Nifty is up by 86 points which is trading at above 15,700 as of now.
Coming to India :- Today we may see big gap-up in our markets based on SGX Nifty and global markets clues.
USD/INR is below 73 which is good for banking stocks not for IT stocks and U.S 10Y bond below 1.6 which is good for markets and Brent Crude is above 70$ so it may drag little bit but not much because we are on pure bullish side.
Today Reliance will be the front engine to lead Nifty higher and SGX Nifty is on fire so we will huge gap-up for sure.
Don't chase if you see any big gap-up , its better to wait up to 10a.m and confirm the trend then go for trade .
Today is an expiry which is first expiry after new margin rule so lets see how they move today and if markets rally continuously without correction or consolidation then expect profit booking in the afternoon session or range bound.
The one who is looking for support and resistances based on OI data and chart analysis :- Nifty had a resistance at 14,700 if it breaks today then next resistance will be 15,800 and strong support at 15,500 and if 15,700 taken out then it may act as support .
Bank Nifty had a resistance at 35,716 which is recent high and support at 35,249.
All The Best , Trade With Discipline.