123. Pre Market Analysis - June 09 , 2021
Nifty Closed at flat in negative based on index management .
Hearing a new word in our analysis right? yes you heard right word , whenever the markets are pure bullish but few weightage sectors trying pull the market down but investors don't want to give the chance to sellers so they will pump their money in other sector to close at flat . This is called Index management.
Yesterday it was happened , Financial and Metal stocks were under selling pressure , where as the Buying was seen in IT , FMCG , Pharma and Auto stocks.
By the EOD Nifty fell just 11.60 points , Sensex was down by 52.94 points and Bank Nifty declined 358.40 points .
FIIs bought 1422.71 crores and DIIs sold 1626.98 crores which is an clear indication that FIIs supporting to Nifty and DIIs dragged Financial and metal stocks.
India VIX closed with 2% lower , remember VIX will only indicates Nifty not bank Nifty so falling VIX is an sign for bullish rally for Nifty 50 not Bank Nifty.
Coming to Global markets :- Last night U.S and U.K markets closed mixed and Currently Dow Jones , Nasdaq and U.K futures are trading at flat in negative.
Most of the Asian markets are trading at lower.
SGX Nifty is down by 10 points as of now.
Coming to India :- Today we may open at cautious based on SGX Nifty and global markets clues.
Brent Crude is above 72$ which is not good sign for markets so we may see some fall in our markets today however entire global markets are weak.
Banking stocks are under pressure and HDFC bank broke 1500 level , Kotak broke 1800 level and If Axis Bank breaks 740 and ICICI bank breaks 640 and if Bank Nifty breaks 35,000 then we may see free fall in Bank Nifty if all beak at a time.
Consider the Crude rise , Global markets weak , Banking stocks under pressure may spoil Nifty momentum but any fall more than 1% in Nifty will be an opportunity to buy.
On these days really markets changed because once upon a time Bank Nifty used to make 1000 points in intraday everyday but now it is making just 300 to 500 points moves and this is what we need to adopt now so its better to catch the rally in the beginning and if you missed it then wait for next day but don't think that the fall is just happen 400 points so we can chase the rally for next 600 points if you go with that mindset then you will burn your hands soon.
If markets open with huge gap-down then don't chase it or if it open at flat or less gap-down then expect some sharp fall in the first hour and in these markets every rise will be sell off so don't be on buying side until you get a direction .
If fall is happen in the morning itself of more than 1% then afternoon session markets may come into Wednesday erosion moves(consolidation or wild moves)
The one who is looking for support and resistances based on OI data and Chart analysis :- Nifty 15,800 CE is the nearest resistance and support at 15,633.
Bank Nifty if 35,000 taken out then it will act as resistance and support at 34,420 .
All The Best , Trade With Discipline.