166. Pre Market Analysis - Aug 25 , 2021
Markets closed at higher with a help of Financial , Reliance , Metal stocks etc..
Where as Nifty rallied 128 points , Sensex gained 403 points and Bank Nifty jumped 588 points.
Banking stocks out performed yesterday and mainly HDFC Bank , ICICI bank contributed 370 points out of 588 points rally in bn and its strong move on upside.
But yesterday FIIs sold 1644.91 crores and as usual DIIs supported by buying 2380.05 crores in cash market.
IT stocks fall is just because of profit booking and all metal stocks are recovering their fall slowly .
Nifty broke 15,591 level with strong volume and now clearing ATH is pending and for sure it will do it by today and Bank Nifty is having a strong resistance at 35715 to 35800 area and once it taken out then expect it up to 36000 .
Also Nifty and Bank Nifty put side writing was happening more but they are building at few levels on call side too ,which are 16700 CE , 16800 CE nearest levels but 16,700 may break easily if Financial stocks bull rally continue so we may see sudden short covering at 16,700 and they might add at 16,900 freshly but remember this is will happen only if Banking stocks continue the bulls rally.
Bank Nifty 36,000 CE short covering started so it indicates that investors having a fear on upside breakout , that's why they are building freshly at 36,500 so if bank nifty breaks 36000 by this week then don't get surprise .
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 at flat in negative.
Asian markets are trading at flat in negative.
SGX Nifty is up by 49 points.
After reading 6,7,8 points and we knew you were on bullish for short term but coming to intraday its not like that and consider the way FIIs are selling and Bank Nifty closing below 35,715 levels so cautious if bank nifty opens gap-up at 35,715 and for sure it will retest at least once before it breaks towards upside.
If it opens above 35,800 directly with gap-up then wait and see first one hour , if first one hour it holds above 35,800 then bank nifty may reach 36,000 easily by today itself.
Nifty had a support at 16,591 now and Bank Nifty had a support at 35,500.
Overall View is buy on dips if bn holds above 35800 and if it fails then its better to scalp on both side moves .
All The Best , Trade With Discipline.
Wishing You A Profitable Day.