23. Pre Market Analysis - Dec 24 , 2020
Yesterday Nifty shot up by 135 points and Bank Nifty was up by 257 points . Its purely buy on dips market , its an good opportunity to enter at every dip but many people stop loss got triggered due to entering at higher levels .
Its very difficult for beginners to find entry points on these kind of markets . So we always suggest to beginners to stay away when see these kind of markets.
Yesterday Wipro Shot up 5.5% due to buyback offer.
Yesterday Nifty Pharma , Nifty IT performed very well.
Yesterday out of 135 points appreciation in Nifty , Nifty IT alone contributed 45 points and Financial sector contributed more than 36 points and FMCG contributed 26 points.
Sometimes its important to check the sectorial contributions and individual stocks contribution to get complete view on market.
Today there are several factors to check before trade on the market .Upcoming days we have 3 holidays so most of the people try to unwind their positions so today we may see some wild moves on both sides.
Its Very difficult for Nifty to touch recent high by today untill big bulls come into the action but we are expecting big rally today because of year end factors & 3 trading holidays & increasing the new cases and deaths in UK so expect some both side moves today with huge volatility.
Coming to Global Markets :- US markets closed higher and Nasdaq touched ATH. Currently Dow Jones Trading positive as of now.
All Asian markets are mixed.
SGX Nifty Crossed 13,700 and its very interesting but we already know bulls always recovered the market very fast.
Coming to India :- After seeing SGX Nifty up by 190 points in the morning , we can definitely expect our Nifty today to close above 13,700.
All premium came to lower so sellers need highers premium to sell so they will try to bring the market in one direction first and after they will do shortsell when gets higher. This is the strategy they will use so be cautious when you see big moves.
The One who is looking for Open Interest Data :- 13700ce was seen at more contracts so expect some reversal or consolidation when it touches 13700 and once it breaks with good candle then expect upto 13,750 but for sure today our Nifty will close below 13,800.
For put options 13,500 and 13,400 will be the strong support by today based on OI data.
Bank Nifty 30,000 will be dynamic resistance if it breaks then the chances of reaching 30,500 is more and 29000 will be the crucial support for today.
All The Best , Trade With Discipline.