170. Pre Market Analysis - 01 Sep 2021
Markets continued the bullish rally by another day and led by Bajaj twins , TCS, HDFC twins , Bharti airtel , Asian paints etc..
Where as Nifty jumped 201.20 points , Sensex rallied 662.63 points and Bank Nifty 76.90 points which is flat closing day for bn.
Looks like FIIs gained the complete momentum after FED announcements where as they bought 3881.16 crores which is very big in last 6months and DIIs started booking their profits as yesterday sold 1872.40 crores.
All sectors out performed except Reliance and looks like some stocks are in over bullish which are mainly Bajaj twins and now they need to take some breath .
Nifty was rallying from many days and last two days it shot up 450 points and which is an history for Nifty to gain 1000 points in less than 10 days and
Now Nifty is in completely over bullish and it needs to consolidate or correct before going to make any big upside so don't buy at edge of the trend because if correction starts then it will be big so cautious at higher levels.
Bank Nifty is waiting to break 36,500 odd levels and once it taken out then 37k is possible but consider the way 36,500 CE they are building , it means that CE writers are not allowing to cross that level and any short covering at 36,500 may give aggressive move towards upside until that bank nifty will consolidate or correct.
Coming to global markets :- Another day for U.S and U.K markets to close in flat and currently Dow Jones , Nasdaq and U.K futures are trading with flat in positive.
Most of the Asian markets are positive.
SGX Nifty is up by just 10 points as of now.
Coming to India :- Today our markets may open with flat based on SGX Nifty and global markets clues.
Nifty is in completely over bullish and looks like market is going to open flat and also Indian GDP came with less number but it wont impact much because less number is due to covid second wave so for sure next time we will bounce with good number by next quarter so people don't get panic with this quarter GDP .
Nifty 17,200CE is having 60k contracts but yesterday added only 7k and 16,300CE added aggressively so Nifty 17,200 break may possible by today or tomorrow but remember if Bank Nifty breaks 36,500 then it gets easy for Nifty to break 17,200 otherwise Nifty may go with buy on dips or consolidation.
Mark yesterdays high and low for Bank Nifty and breaking any side with huge volume will give you a direction by today.
Bank Nifty had a resistance at 36,500 and support at 36,274 and 36k .
Nifty had a resistance at 17,150 and 17,200 if these taken out then expect it up to 17,300 and support at 16,946 which is Mondays high.
Last one please trade with less capital for at least one week due to this SEBI new rules and mainly option buyers will see huge volatile from today onwards so better to practice with less rather than doing aggressive trades.
Many people are protesting to SEBI by today as no trading day and ill also help them because its our problem and remember SEBI decided their rules strictly so its better to adapt this new markets and volatile rather hoping for old one.
All The Best , Trade With Discipline.
Wishing You A Profitable Day.
BONFIRETRADER