Markets closed with new record high on yesterday with a help of Banks , IT , Auto and select FMCG stocks.
where as Nifty rallied 57.40 points , Sensex gained 221.52 points and Bank Nifty was up by 297.20 points.
FIIs bought 633.69 crores and DIIs sold 649.29 crores.
Check with Nifty 1 day time frame and the way it is forming the less body candles with 1day time frame looks very weak and Banking Nifty is struggling to break 35,540 and until it breaks that level , we may see the same tortoise moves in Nifty.
Banking stocks are facing lot of resistances , HDFC - 1500 , Kotak Bank - 1820 , ICICI Bank - 656 , Axis Bank - 755 and SBIN -440 until these levels taken out Bank Nifty will be go with 200 to 300 points upside moves only or else it may fall.
Nifty had no resistance on upside because it is making new ATHs but people are adding OI at 15,900 and 16,000 CE which are psychological resistances only.
Coming to global markets :- last night U.S markets closed in negative due to ahead of FED meeting and U.K markets closed at positive.
Currently Dow Jones , Nasdaq are trading in negative and U.K futures are flat.
Asian markets are mixed.
SGX Nifty is down by 20 points as of now.
Coming to India :- Today we may see gap-down opening based on SGX Nifty and global markets clues.
Crude crossed 74 , USD/INR is at 74.34 and last few days onwards Dow Jones was muted but it turned to negative now and Consider the way Nifty is forming the weak candles with 1 day time frame at higher levels and combine all these parameters now so its an clear indication for bearish market.
Looking for an CE opportunity is not a sense for us today so try to be on PE side and take the trades based on your set-up .
Nifty 15,800 PE was added more OI which may protect Nifty today but once it taken out then fall may continue up to 15,700 levels.
Bank Nifty 34,665 and 34,416 levels taken out then expect big fall in Bank Nifty.
Today is an Wednesday but from the last 2days markets are in consolidation so many writers made money on OTMs so if writers did short covering on PE side then it will take more easy to fall for markets.
Any big fall in the morning hours and chasing the same rally after sometime doesn't make sense so if you miss the opportunity then wait for consolidation and then take breakout entry.
The one who is looking for support and resistances based on OI data and chart analysis :- Nifty had a psychological resistances at 15,900 and 16,000 and support at 15,802 and 15,774.
Bank Nifty had a resistance at 35,540 and support at 34,665 and 34,413.
All The Best , Trade With Discipline.