136. Pre Market Analysis - July 01 , 2021
Markets ended lower for the Third straight day due to the selling pressure in all sectors except IT and Reliance.
Where as Nifty was down by 27 points , Sensex fell 66.95 points and Bank Nifty tanked 238.10 points.
FIIs Sold 1646.66 crores but DIIs is the one who is supporting to the market every time, even yesterday also DIIs bought 1520.18 crores.
Looks like market is waiting for big news to break the bar gates (Range)to any side but as of now there is no good news or bad news too , along with that global markets are also not making any big moves .
So our markets may go in range bound until we get any news to trigger on any side and but the question is when that breakout come ? next week ?or this month? No we cant predict that move.
Remember every day markets cant be trendy , if investors get bored then they will put the market in range bound for sometime , there was some days where markets consolidated for 6 to 7 months too, so rather than expecting a breakout , for intraday its better to capture the both side moves in this range bound .
Financial sector weightage on Nifty is more than 30 % so any fall or rise in Bank Nifty may see drastic change in Nifty .
Coming to Global markets :- Last night U.S markets closed with mixed and U.K markets closed at lower.
Currently Dow Jones , Nasdaq and U.K futures are trading at flat.
Most of the Asian markets are trading at lower.
SGX Nifty is up by just 20 points as of now.
Coming to India :- Today our markets may open at cautious based on SGX Nifty and global markets clues.
Due to global markets weakness any gap-up may be an opportunity for sellers to pull the market down so expect some sell -off in the first hour and few levels may protect our markets today.
Overall view is bearish so any rise will be sell off today but due to expiry expect some short covering moves also , any big short covering may pull back markets to higher side. its better to trade on both sides with right entries rather than expecting big fall.
We are not expecting a wild expiry today because this is the first expiry of this month and still there is 4 series of this month so markets may react less in this expiry .
Bank Nifty 34,579 and next 34,422 may support the market and Nifty for downside watch 15,682 and next 15,631.
The one who is looking for support and resistances based on OI data with chart analysis :- 15,800 CE and 15,900 CE was the highest OI of this expiry and so markets may close below 15,800 today and 15,500 PE , 15600 PE was added more OI which may support the markets so final view is Nifty will trade in between 15,800 to 15,600 today.
Bank Nifty 35000 CE was added more OI which may resist the market , if it taken out then 35,500 will be the resistance and put side not added aggressively due to bearish market , but 34,500 and next 34,000 may protect the Bank Nifty.
All The Best , Trade With Discipline.
BONFIRETRADER