139. Pre Market Analysis - July 06 , 2021
Finally Nifty closed above 15,800 by gaining 112.12 points by the EOD with a help of Financial ,Select Auto and FMCG stocks.
Where as Sensex rallied 395.33 points and Bank Nifty shot up 402.10 points.
But still FIIs were on selling side even yesterday also they sold 338.43 crores and DIIs are the only one who is supporting to the market as yesterday they bought 645.59 crores.
Nifty requires only few points to touch ATH and consider the way markets closed at days high on yesterday looks still bulls are carry their positions .
Nifty ATH is an strong resistance and the chances of reversal or consolidation is more but it need huge volume to break ATH and rally further and that is possible with IT stocks as of now due to ahead of their results.
This week and next week IT stocks are declaring their results so any positive move may give momentum to Nifty to move higher.
Consider the way yesterdays rally in Bank Nifty and it seems bulls still alive but Bank Nifty should break 35,500 to 35,715 area with huge volume until that bank nifty will be bearish or range bound moves only.
Coming to Global markets :- yesterday U.S markets holiday but U.K markets closed at little bit higher and Currently Dow Jones, Nasdaq and U.K futures are trading at flat.
Asian markets are mixed.
SGX Nifty is down by 29 points as of now.
Coming to India :- Today our markets may open with flat based on SGX Nifty and global markets clues.
After reading 3 ,4 , 5, 6, 7 points we know you were on bullish side today but remember yesterday after OPEC meeting Brent crude shot up 1% which is trading at 77.56$ now , which is completely negative for us so for sure it will impact our bulls sentiment.
But many bulls are carrying their over night positions and PE writers too, so everyone will try to unwind their positions today after market opening so if this is happen then markets will fall more due to short covering on PE and Unwinding on CE.
Remember markets will fall or rise mainly on short covering and long un winding but with these less volume moves , we are not convincing to scalp on these markets so one more muted day for us and beginners try to stay away and try to observe this new environment and adopt it , this is the time where markets will test our patience and if you failed to be patient then you will be out of market soon , as a trader you should know when to trade and when not to trade .
Finally Take the trades on index options until and unless you see with good volume moves on either sides and on these days its better to be a options writer or shift to equity stocks and trade on it.
The one who is looking for support and resistances based on OI data with chart analysis :- Nifty ATH and 16,000 CE was carrying huge OI so these may act as strong resistance and 15,700 PE was added more contracts which may act as support.
Bank Nifty had a resistance at zone of 35,500 to 35,715 and support at 34,945 and next will be 34,668.
All The Best , Trade With Discipline.
BONFIRETRADER