42. Pre Market Analysis - 25 Jan , 2021
Nifty corrected more than 200 points on Friday .
Bank Nifty fell 1000 points in single day , it was an huge selling pressure.
Friday Banking stocks ,Metal stocks & Reliance fell very badly , as we already know that if weightage stocks started falling then definitely Nifty will fall so that is reason Nifty & Bank Nifty fall on Friday due to high Weightage fall.
After long time FIIs and DIIs were on the selling side on Friday.
FIIs sold 635 crores and DIIs sold 1290 crores in cash market.
we have expected last 2 days fall on this week but the fall already happened so expected some short covering or consolidation in our markets.
Remember our Financial Minister gave a big statement about budget that "Budget is like never before in 100 years" . and this statement made panic everyone so that is the reason our markets going irrespectively from past 2 days .
As everyone was booking their profits before budget and we already seen some profit booking on last 2 days so expect some short covering today before any fall.
Focus on Reliance and Jswsteel as they came with good results and Today Reliance may open with gap -up today 7 that may help to Nifty today .
This complete week all banking stocks announcing their results so focus on this sector.
Today Kotak bank, L&T declaring their results and try to observe Kotak Bank today rather than going for trade because Kotak bank results coming in market hours so we may see some sudden big moves.
Coming to global markets :- US market closed lower but curently Dow Jones & Nasdaq futures is trading higher as of now.
All Asian markets are trading higher.
SGX Nifty is up by 125 points as of now.
Coming to India :- Today markets may open with Gap - up based on SGX Nifty and global markets clues.
Reliance looks strong today as they came with very good results if we see some action on Reliance then its difficult for Nifty to fall.
If our markets open with huge gap -up then expect some correction(gap covering) in the morning and if that not happen after gap -up then definitely sellers will give up(short covering) and it makes our markets to move further higher.
Bank Nifty fell is unpredictable as this complete major banking stocks are declaring their results so Bank Nifty may move with irrespective way so expect any side moves .
Expect a huge if Bank Nifty breaks yesterdays low.
The One who is looking for support and resistance based on OI data :- Nifty had a strong resistance at 14,500 & 14,600 and support at 14,300& 14,200. any one of these levels breaks then expect a sharp moves on Nifty.
Bank Nifty had a resistance 31,500 and support at 31,000 .
Finally remember one point as tomorrow is holiday and we have only 3 trading sessions by this jan series including today and budget is there on next monday so dont trade with hurry try to trade safe. Market is forever but capital is not forever .
All The Best , Trade With Discipline.
BONFIRETRADER