169. Pre Market Analysis - 31 Aug 2021
Markets continued the bull run off the week with an aggressive kick start where Nifty and Sensex made new records high.
Nifty jumped 225.80 points , Sensex rallied 765.04 points and Bank Nifty gained 719.90 points.
FIIs and DIIs were both on buying side on yesterday where as FIIs bought 1202.81 crores and DIIs bought 688.85 crores in cash market.
All sectors contributed well on yesterday except IT sectors and looks like they are waiting for results by next week and mainly two big giants which are Reliance and HDFC twins out performed yesterday.
Nifty from Friday low to Monday high it was 385 points move which is an very quick aggressive move and Bank Nifty from Friday low to Monday high it was 1000 points rally and finally bank nifty gave a perfect breakout now.
Nifty 17000 CE looking highest OI but everyone added more OI at 17,200 because of a fear they are having that Nifty may break 17,000 by this week and
Also 16,900 Ce & PE was having same OI and call side OI was not newly builded and that was already builded by previous days but put side 16,900 only yesterday alone itself they added 54,600 contracts out of 56k which is an clear indication for us markets may continue the bulls rally in short term.
Bank Nifty after long time it gave a breakout and every banking stocks broke the resistances where as HDFC Bank broke 1560 , ICICI Bank -707 , Axis Bank-765 and SBIN -413 but Kotak is waiting to break 1800 level and it alone cant drag bank nifty and now all banking stocks came out along with bank nifty gave breakout so it will be bullish signal before results for bn .
But bank nifty 36,500 Ce was having some OI and we don't think it will act as resistance because lot of people added new OI at 37,000 not 36,500 and they knew bn is going to break 36,500 so that is the reason they builded at 37k so expect a good move on upside in coming days.
Coming to Global markets :- last night U.S and U.K markets closed at flat and currently Dow Jones , Nasdaq and U.K futures are trading at flat.
Most of the Asian markets are trading in red.
SGX Nifty is down by 37 points as of now .
Coming to India :- Today our markets may open with flat in red based on SGX Nifty and global clues.
With two days of aggressive moves in markets now they need to take some rest before any upside move so expect today markets to move in range bound to get some deep breath.
If markets open with gap-down then it may correct the gap immediately due to yesterdays strong closed as looks like the way yesterday they are closing at days high is an indication for us that many bulls carrying their position for next day so expect gap recovery in the opening itself.
Bank Nifty had a little bit resistance at 36498 and support at 35,715 and Nifty had a resistance at psychological resistance at 17k and support at 16,706.
Overall view is range bound with bullish .
All The Best , Trade With Discipline.
Wishing You A Profitable Day.
BONFIRETRADER