29. Pre Market Analysis - Jan 04 , 2021
Nifty closed above 14k on Friday and the chances of holding above 14k is more until it breaks 14k with huge volume candle to down side.
Bank Nifty still 1000 points away to touch ATH.
First time FIIs and DIIs are on buying side and its an good start of first day of the year and lets see whether they continue are not.
Axis bank , ICICI Bank , SBIN are ready to break recent highs but HDFC bank is struggling to break 1450 and KOTAK Bank is showing little bit profit booking.
If all these Banking stocks came out of their recent ranges then Bank Nifty will easily touch 32k on next coming days.
All AUTO Stocks came with good results ,TATA MOTORS and EICHER MOTORS sales up by 21% and 37%.
All IT stocks are performing very well and next 10 days all IT stocks will be announcing their results and hope it is positive.
Finally DCGI approved 2 vaccines and we can expect some positive rally from pharma stocks.
SEBI fined 40 crores on Reliance industries and it is very less amount for them so dont big fall.
Finally focus on IT Stocks , Pharma Stocks , AUTO Stocks.
Coming to Global Markets :- US markets closed positive on last Friday and Currently Dow Jones Fut is flat.
All Asian Markets are good but Nikkei fell 1% due to a some covid tensions on Tokyo.
SGX Nifty is up by 140 points and trading at ATH.
Coming to India:- Today our market may open Gap - up based on SGX Nifty.
If Bank Nifty breaks 31,500 then it will reach to 32k for sure.
If Reliance and HDFC bank came into action then we will see a big rally on Nifty and Bank Nifty also.
The one who is looking for Open Interest data :- 14,200 ce was seen at more contracts which will act as strong resistance and 14000 and 13900 will be the strong supports based on OI data.
Bank Nifty 31,500 ce was seen at more contracts which will act as strong resistance and 31,000 will be the strong support.
Finally we have more good news and less bad news and the overall market is bullish if markets open with huge gap up then expect some gap covering and one more buy on dips market we may see today.
All The Best , Trade With Discipline.
BONFIRETRADER