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161. Pre Market Analysis - Aug 16 , 2021

  1. Another consecutive day for Nifty to close at fresh record high with a help of weightage stocks move.

  2. Where as Nifty shot up 164.70 points , Sensex rallied 593.31 points and Bank Nifty gained 232.25 points.

  3. Most of the IT stocks made new ATH and remember when only IT stocks rally then Nifty may go with buy on dips but now we are witnessing IT , Reliance, Banking and FIIs & DIIs number together positive so that is the reason for Nifty to go with complete bullish .

  4. However FIIs bought 819.77 crores and DIIs bought 149.50 crores .

  5. In previous analysis we had mentioned few levels of Banking stocks and HDFC bank broke but still Kotak need to break 1800 and Axis Bank 765 , ICICI bank - 707 and SBIN needs to break 430 zone strongly until that Bank Nifty may go with buy on dips or range bound .

  6. If they fail to break those levels then we may see some profit booking which may drag Bank Nifty for at least 200 points downside move.

  7. Nifty is looking so strong but we cant predict that how much it move further but one thing we can tell if IT stocks starts correct then Nifty may correct because already we are seeing less moment in Bank Nifty so the moment is there in only IT so if IT stocks fell then Nifty may fall until that Nifty will be bullish only not bearish.

  8. Coming to Global markets :- Last Friday U.S and U.K markets closed with flat in positive and Currently Dow Jones , Nasdaq and U.K futures are trading at lower.

  9. Most of the Asian markets are in red.

  10. SGX Nifty is down by 35 points as of now.

  11. Coming to India :- Today we may open with flat in negative based on SGX Nifty and global markets clues.

  12. If markets open with gap-down then expect at least gap recovery in the first one hour and after that markets may go based on weightage stocks move and

  13. We have only 2 trading days for this expiry and today is already starting so we have one left and Friday markets went very smooth so we may see odd moves on both sides by today or tomorrow .

  14. Nifty 16800 CE was added more contracts which is an highest number too and 16400 PE was nearest highest OI builded so Nifty may move in between 16,400 to 16,800 based on OI data but our view is still bullish on Nifty due to huge OI writers on every PE strike.

  15. Bank Nifty structed in range between 36,293 to 35,800 so breaking any side with huge volume will give an directional move until that Bank Nifty will trade in that 500 points range so it will be good for option writers and buyers need to scalp few momentum trades and that is the only way to survive in this type of phase.

  16. If Bank Nifty breaks any one side then expect at least 300 to 400 points move on breaking side.

  17. Overall view is buy on dips on Nifty and 500 points range moves on Bank Nifty and breaking any side will be an direction for us.


All The Best, Trade With Discipline.

Wishing You A Profitable Day.

BONFIRETRADER

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