36. Pre Market Analysis - Jan 15 , 2021
Nifty and Bank Nifty started consolidating.
Its very good to see those indices are in consolidation because we already mentioned that continuous rally is unhealthy for markets.
Bank Nifty consolidating at ATH and its very crucial level for Bank Nifty.
Any side break can expect 500 to 1000 points.
IT stocks started consolidating after huge rally from many days .
Reliance and TCS performed very well yesterday.
Reliance was trading from many days in between the range of 1900 to 2000 and breaking on any side will be an opportunity to go for trade.
Today HCLTECH is declaring their results and tomorrow HDFC Bank will declare their results.
As usual FIIs bought 1076.62 crores and DIIs sold 188.1 crores.
Coming to global markets :-Biden announced 1.9 trillion dollar covid stimulus package today but US markets closed lower yesterday and Currently Dow Jones Fut trading flat with negatives bias.
All Asian markets are negative.
SGX Nifty down by 50 points as of now.
Coming to India :- Today our markets is expected to open in the red based on global markets.
we are at higher levels so expect some consolidation or correction in the market.
Call side premiums are very high so expect some odd moves to adjust the premium and erosion will be very high on call side.
More over today is Friday so expect less moves and expect the premium erosion with expected volatility.
If bank Nifty breaks yesterdays low or high will be a direction for market but upside move needs very huge volume to break.
The One who is looking for open interest :- Nifty had a resistance at 14,600 and support at 14,500 based on OI data.
Bank Nifty had a resistance at ATH and if it breaks 33k will be the next resistance and support at 32,500 and if it breaks then next support will be 32k.
All The Best , Trade with Discipline .
BONFIRETRADER