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156. Pre Market Analysis - Aug 08 , 2021

  1. Second straight day for Nifty & Sensex to end at record closing high led by Banking & Reliance stocks.

  2. Where as Nifty rallied 128 points , Sensex gained 546.41 points and Bank Nifty shot up 820.65 points.

  3. Second straight day for FIIs by pumping 2828.57 crores which is one more big number and DIIs sold 411.36 crores.

  4. Yesterday HDFC Twins ,ICICI Bank , Axis Bank , Kotak Bank , SBIN and Reliance alone contributed 168 points in Nifty which is an completely out performed.

  5. After reading 3, 4 points what did you understand? Let me give you a live example , In past months we have seen IT , Metal , Pharma stocks rally , even we have seen 8 to 10% rally in some stocks of those sectors but our question is , did you saw any breakout in Nifty when those sectors rallied? obviously No,

  6. Now last 2days Financial stocks & Reliance & FIIs positive number all are out performed and that is the main reason for Nifty crossing 16k mark strongly and this is what you need to understand ,, while predicting the market you need to check weightage sector first because only Financial sector weightage is 33% on Nifty and 10% weightage of Reliance .

  7. While coming to Banking Nifty HDFC bank , Kotak Bank , Axis Bank are short covering happening and ICICI bank & SBIN are long-building and Bank Nifty Fut also huge short covering and short coverings happening due to ahead of SBIN results and it came positive number too so all sellers are exiting their positions on other banking stocks and with this advantage Bank Nifty crossed 36k mark strongly .

  8. After 2 days of aggressive rally , we are expecting Bank Nifty and Nifty may start consolidation due to heavy rally so expect range bound expiry today and

  9. Today RBI Monitory Policy is there at 10 A.M so volatility will be high so stay away till 10 A.M from Index options.

  10. Coming to Global markets :- Last night U.S markets closed in negative but U.K closed in positive and Currently Dow Jones , Nasdaq and U.K futures are trading in positive.

  11. Most of the Asian futures are trading in positive.

  12. SGX nifty is up by just 23 points which is flat as of now

  13. Coming to India :- Today our markets may open with flat in positive based on SGX Nifty and global markets clues.

  14. Today is an expiry day and morning 10 A.M RBI monitory is there however Dow Jones closed in negative so expect some profit booking in the first hour and today will be the day to scalp both sides but volatility will be high so trade with less capital if you cant handle the volatility.

  15. Nifty had a psychological resistance at 16,400 which was seen huge OI writing and support at 16,200 and 16,000 will be major so expecting Nifty to close above 16k by this expiry for sure.

  16. Bank Nifty had a resistance at 36,452 if it breaks then we may see at ATH in coming days and support at 35715.

  17. Over all view is range bound with wild moves on both sides and RBI may trigger or pump the market once and after that again markets will be back to normal position.

See all in the live session and lets learn all this analysis in the live.


All The Best , Trade With Discipline.

Wishing You A Profitable Day.

BONFIRETRADER.

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