158. Pre Market Analysis - Aug 10 , 2021
Markets closed in positive note with a help of select Financial & IT stocks.
Nifty opened with a gap-up of 20 points and rallied 60 points and from intraday high it fell 140 points but bounced back 70 points and closed with a gain of 20 points which is an whipsaw market for Nifty and mainly Reliance , Metal stocks dragged the market,
But Consider the way Banking stocks protection for Nifty is completely out performed and
We always said few weightage stocks and FIIs number is enough to predict the market ,however we are witnessing that in live on these days, as you can observe Reliance , Metal stocks dragged the market yesterday and even some point of time few banking stocks also fell but HDFC Bank & Kotak Bank standard like a unbreakable wall and completely protected the market and
As expected FIIs ended by buying 211.91 crores but DIIs sold 716.15 crores and this is what you need to learn , few days back DIIs completely bought with high number and FIIs sold but markets under performed and now when FIIs turned positive but buying less than DIIs sell number but still markets are going with buy on dips .
So if you are trading in index options or predicting the market then its important to make a friendship with FIIs & weightage stocks .
Coming to Global markets :- Last night U.S & U.K markets closed in negative but few indices like Nasdaq & FTSE 100 closed in positive and
Currently Dow Jones , Nasdaq and U.K futures are trading at flat in negative.
Most of the Asian markets are in red.
SGX Nifty is down by 19 points as of now.
Coming to India :- one more cautious day for us today due to SGX Nifty and global markets clues.
If markets open with gap-down then markets may correct immediately and understand the markets behavior , as of now markets is good for options sellers not for buyers and many straddle players are enjoying and along with as a scalper we too making money by catching few quick moves but if you are looking for trendy day then its better to trade stock specific and as of now markets will consolidate with wide range so scalping is best rather than expecting the trendy market.
Mark yesterdays high and low for Nifty and breaking any side will be an opportunity to scalp and we can scalp in between moves too , it depends on scalping skill.
Bank Nifty will continue the buy on dips and any fall will happen once it breaks 35,715 until that be on bullish side and make money by entering at every dip.
Bank Nifty resistance at 36213 and support at 35,715 to 35,805 area.
Overall view will be positive only and we structed in range so its better to scalp on both sides moves and expect buy on dips on Bank Nifty .
All The Best , Trade With Discipline.
Wishing You A Profitable Day.