39. Pre Market Analysis - Jan 20 , 2021
Nifty Turned Bullish yesterday and closed with 239 points higher.
Bank Nifty jumped 600 points in single day.
Everyone was shocked why the market suddenly turned to bullish after such correction.
On Monday as US Treasury Secretary nominee Janet Yellen advocated for a hefty fiscal relief package before lawmakers to help the world's largest economy ride out a pandemic-driven slump.
Last Friday and Monday we have seen profit booking on our market but when we got one positive news , see how our markets turned to bullish.
This is why we said our Indian markets always recover fast and furious by bulls.
Yesterday FIIs bought only 255.55 crores and DIIs sold just 199.3 crores , they pumped very less money but yesterday our markets rallied very fast , its just happen because of short covering.
All sectors performed very well , Mainly high weightage stocks like Banking stocks , Reliance , Bajaj twins performed very well.
Bajaj twins , L&T announcing their results by today so focus on these stocks today.
Reliance , Bajaj Auto , Bandhan bank, Jinadal stel are announcing their results by tomorrow. so focus on these stocks also
Reliance broke 2000 level yesterday and next resistance is 2050 , if it breaks 2050 then some bullish on Reliance.
Coming to global markets :- US markets closed higher and Nasdaq closed with 200 points up and currently Dow Jones Fut and Nasdaq Fut trading higher .
All Asian markets are trading higher.
SGX Nifty is down by 50 points .
Coming to India :- Today our market may open in flat based on SGX Nifty and global markets clues.
From last 4 days our markets played on both sides with huge volatility now its time to consolidate or one more up side and downside move may happen.
If markets continued yesterdays movement then its very easy to breaks ATH but be cautious at ATH due less funding from FIIs so whatever rally happened yesterdays its just short covering so expect some action from FII buyers to break ATH.
The One who is looking for Support and Resistances based on OI data :- Nifty had a resistance at 14,600 and support at 14,400 , if it breaks any one of the level then expect big moves.
Bank Nifty had a resistance at ATH and support at 32,000 and 31,800 & 31,500.
All The Best , Trade With Discipline .