143. Pre Market Analysis - July 12 , 2021
Last Friday markets closed in red due to selling pressure from Reliance , Baking and IT stocks.
Where as Nifty fell 38.10 points , Sensex was down by 182.75 points and Bank Nifty tanked 202 points.
India VIX fell 4% nearly on Friday and it is going in between 12 to 15 from many days but remember until it breaks 15 towards upside we can expect range bound or bullish , if it breaks 15 then the breakout will be on bearish side for sure.
Last Friday FIIs sold 1124.65 crores and DIIs bought 106.55 crores , it looks like FIIs are not gaining confidence to pump the money so until they turn to positive it will be range bound moves only.
Last week TCS declared the results but it is not reached to expectations and this week July 14 Infosys , July 15 Wipro and July 17 HDFC Bank so any negative or disappoint results from these stocks may trigger the market towards downside.
Metal stocks are out performing.
Coming to Global markets :- Last night U.S and U.K markets closed at higher and Currently Dow Jones , Nasdaq and U.K futures are trading with flat in negative.
Most of the Asian markets are higher except hang seng market.
SGX Nifty is up by 64 points.
Coming to India :- Today our markets may open with gap-up based on SGX Nifty and global markets clues.
If Nifty open near to 15,800 then don't chase the gap-up because 15,800 will be an crucial level , the chances of reversal will be more .
From last few days onwards markets are in range bound and July first two weeks series completed now this is third week so we may see some momentum in this week or next week for sure but trading in wide range is better because we can scalp on both sides and at the same time breakout may wipe his/her account so avoid trading at zones and scalp in the other places.
Bank Nifty 35,000 is an crucial level and if it open above 35,000 mark then wait for sometime and see whether it will hold or not and if it fails and come below 35k then expect some weak performance.
So finally our view is range bound until it breaks the major levels where as Nifty levels are 15,800 to 15,900 area for upside and for downside 15,500 , Bank Nifty 35k , next 35,500 to 35,715 area for upside and downside 34,650 and 33,950 .
The one who is looking for intraday support and resistances based on OI data with chart analysis :- 15,800 is an resistance and 15,636 is an support.
Bank Nifty 35,000 is an resistance once it breaks then mark it as support and another support will be Fridays low , if it breaks then we expect sharp fall.
All The Best , Trade With Discipline.
BONFIRETRADER