165. Pre Market Analysis - 23 Aug 2021
Last Friday Markets didn't gave single chance to buyers to make any pullback towards upside due to weak global clues.
Where as Nifty fell 118.30 points , Sensex was down by 300.17 points and Bank Nifty closed with a loss of 520.65 points.
We knew if markets reacts big then it will come from FIIs so as expected FIIs sold 2287.03 crores and DIIs bought 119.30 crores which is very less number for market protection.
Even in this bears market , few stocks like Bajaj Finance and FMCG stocks touched ATH and also metal stocks fell more than 5% in single day due to China markets fall and we knew our metal stocks are having business with China since many days and that is the main reason for metal stocks fall.
Nifty still looks bullish because falling 300 points from ATH is not an indication of reversal or correction and remember we are falling only because of global markets as once it recovers for sure we will bounce back quickly because Indian markets are always fast and furious .
Due to two days of aggressive fall no one is writing any contracts on PE side but few strikes they are adding to protect the market which are 16,400 PE for Nifty and 35,000PE for Bank Nifty until these levels taken out we can expect some pullback in the markets.
Coming to Global markets :- Last Friday U.S and U.K markets closed at higher and Currently Dow Jones , Nasdaq and U.K futures are trading in positive.
Most of the Asian markets are in green.
SGX Nifty is up by 175 points as of now.
Coming to India :- Today our markets may open with huge gap-up due to SGX Nifty and global clues.
Looks like bulls may take charge today but avoid opening trades if markets open with huge gap-up and also expect one round of dip to buy at lower levels and if we didn't see any correction after gap-up then markets will be range bound for whole day.
Bank Nifty 35,500 CE was seen more contracts which may act as resistance and in chart 35,715 needs to break for any big move and if bank nifty reaches 35,715 or 35,500 with gap-up then wait for it to break otherwise your stop loss will trigger easily.
Nifty 16591 is an resistance so if any gap-up reaches to that level then stay cautious to take CE entry and once it breaks then for sure it will reach ATH easily.
We are in the last week series of this month so expect markets will be spicy with huge volatile and due to slippage orders may place at higher levels so be cautious while placing the order.
Overall view is buy on dips till resistance levels and once it reaches to resistance then markets may dance at higher levels.
All The Best , Trade With Discipline.
Wishing You A Profitable Day.
BONFIRETRADER