140. Pre Market Analysis - July 07 , 2021
Markets failed to hold at ATH due to the heavy selling pressure in last one hour by Auto ,IT , Select FMCG , Metal and Pharma stocks.
Where as Nifty opened with 20 points lower in the morning and rallied 110 points till 02 P.M and touched ATH but last one hour it fell 110 points and closed with a loss of 16.10 points .
Sensex was down by 18.82 points which is an flat closing day and Bank Nifty shot up 367.15 points.
Yesterday the rally happen only because of banking stocks , Bajaj Finance stock and mainly HDFC bank out performed and boosted to other banking stocks to move higher.
Tata Motors fell 10% due to some chip shortage happened and also some results statements impacted on that severely.
FIIs sold 543.30 crores and DIIs bought 521.30 crores in the cash market .
Yesterday Crude crossed 77$ and now it is at 74.5$ which is good for us .
All Options buyers and sellers who made money from March 2020 to till June starting 2021 and they are struggling now to survive in this new market due to low volume and low premiums and
This is happened on 2018-19 year and again it is happening now but the only way to survive in this market is to observe the market for few days and learn how the moves are happening without volume and how fast we can scalp and how much capital we can deploy in each of the trade ,
If you analyze this for few days by observing the market in live by trading with single lot then trust us you will never fail in future even if we get another new pattern in the market and this is the only way where a real trader will do.
Coming to Global markets :- last night Dow Jones fell 400 points but recovered 200 points by the EOD and U.K markets closed at lower.
Currently Dow Jones , Nasdaq and U.K futures are trading with flat in negative .
Most of the Asian markets are flat in negative.
SGX Nifty is down by 58 points as of now.
Coming to India :- Today our markets may open with gap-down based on SGX Nifty and global markets clues.
Consider the way last night Dow recovery but now futures is trading at negative territory so we are expecting our market to under perform today after gap-down too, but any short short covering moves may pullback strongly to higher side .
Remember Bank Nifty weightage percentage is more than 33% on Nifty and Bank Nifty is facing a area of 35,500 to 35,715 to move further and once it taken today then expect 500 to 700 points rally otherwise today will be an sell on dips markets or range bound market.
After gap-down if fall continues then afternoon session we will consolidation phase due to Wednesday and last hour moves based on U.K markets opening and Dow reaction.
Everyone will get one doubt in this market, premiums are very less then why should market consolidate? , the reason is writers getting very less decay in this market that's the reason they are putting more consolidation .
The one who is looking for support and resistances based on OI data with chart analysis :- Nifty had a resistance at 15,800 to 15,900 phase and support at 15,768.
Bank Nifty had a strong resistance at 35,500 to 35,715 and if it dancing at 35,500 then avoid the complete day and support at 35,000.
All The Best , Trade With Discipline.