37. Pre Market Analysis - Jan 18 , 2021
Nifty fell 162 points and Bank Nifty fell 273 points on Friday.
Except HDFC Bank all banks closed in red.
Don't think friday fall will be an reversal sign for Nifty and Bank Nifty .
It might become correction also and ofcourse we are at ATHs so the chances of reversal is more but we cant predict the reversal by seeing 1% fall.
But expect some correction on our markets.
Global markets are looking weak from past few days and our markets started consolidating at ATHs and may be this is the time for FIIs to book their profits and already they started unwinding on F&O segment.
One profit booking day is enough to fall more than 5% . Lets see when that fall happen.
FIIs pumped 971.06 crores and DIIs sold aggressively 942.07 crores.
Tata Motors shot up 30% in just 6 sessions.
All Sectors are under performing.
HDFC Bank came with good results. and we can expect some positive movement in HDFC Bank.
This week Baja twins , Bajaj Auto , Jswsteel are one of the imp stocks announcing their results.
All IT done with good results except Mindtree and it is announcing today but after results IT stocks started falling and it seems like profit booking.
Auto Stocks may see some action due to semi conductor shortage.
IRFC will open its IPO for subscription on Jan 18 to jan 20 . This will be the first IPO in 2021.
Coming to Global Markets :- US markets closed lower on friday and Today US market holiday.
All Asian markets trading lower.
SGX Nifty trading lower.
Coming to India :- Today our market may open Negative side based on SGX Nifty and other global clues.
Considering US market on holiday today and remaining markets are looking weak and all sectors are consolidating and all these clues indicates some fall on our markets.
If our markets open with gap -down then try to wait for sometime to get clear direction and if it falls in the morning session then it may consolidate or reverse in the afternoon session.
The One who is looking for Support and resistances with OI data:- If Nifty breakdown 14400 then expect some fall and 14500 will be the upper resistance and 14600 will be the next.
If Bank Nifty breaks fridays low then expect some down fall and 31500 will be the next support and resistance at 32,500 .
All The Best , Trade With Discipline .
BONFIRETRADER.