120. Pre Market Analysis - June 04 ,2021
Markets bounced back very strongly with the help of Financial stocks ,Reliance FMCG and Construction stocks.
Where as Nifty made new record high by gaining 114.20 points ,Sensex rallied 382.95 points and Nifty Bank gained 275.20 points.
FIIs bought 1079.20 crores and DIIs sold 278.97 crores.
First time in 2021, India VIX closed below 16 ,indication of over bullish.
There is nothing to discuss today ,however everyone is looking for RBI policy.
Banking stocks are preparing for a big occasion which is RBI monetary policy by today.
Any positive news from RBI governor boost bank nifty for at least 600 to 700 points today.
Its better to stay away from banking stocks and index options till 10 A.M , after announcement confirm the trend with news and go with flow.
Coming to global markets :- Last night U.S and U.K markets closed at lower and currently Dow Jones , Nasdaq and U.K futures are trading at lower.
Asian markets are mixed.
SGX Nifty is down by 18 points as of now.
Coming to India :- Today our markets may open with cautious based on SGX Nifty and global markets clues.
Today really gonna be interesting day , One side we have seen weak global markets performance and on the other hand we are looking for RBI policy which is declaring by today at 10 A.M .
But remember one thing we already knew whenever global markets are in mute then if we come up with positive domestic news then our markets will rally sharply.
Big players will trap you around 10 A.M by making big wild moves on both sides so don't be fall in the trap ,better wait for the news and confirm it then join the party in the club and make money .
If any insider news come then we may rally from the morning itself and beginners just stay away and observe the market till 10 A.M.
The one who is looking for support and resistances based on OI data and chart analysis :- Nifty had a psychological resistance at 15,800 and 15,600 PE was seen more contracts which may act as support .
Bank Nifty watch 36,130 for upside , if it breaks with huge volume then we may see 1000 points in Bank Nifty and support will be 35,700 if it crossed today otherwise 35,400 will be the support.
All The Best , Trade With Discipline.
BONFIRETRADER