48. Pre Market Analysis - Feb 03 , 2021
Nifty continued the bullish rally after announcing the budget and closed with a gain of 366 points and Bank Nifty out performed.
Remember Nifty fell more than 1100 points in 5days and last two days Nifty raised 1100 points . Bulls always recover the market with fast and furious .
Yesterday Bank Nifty shot up 1000 points in first 15 minutes even it opened with hue gap-up of 500 points.
Heavy weightage stocks HDFC twins , Reliance , Kotak Bank , ICICI Bank , L&T , Tata Motors performed very well.
Yesterday all sectors closed in positive and mainly Financial , Energy , Auto sector performed very well.
Tata Motors rallied 16% yesterday .
HDFC results out and we have only SBIN from banking sector and that will announce on Thursday so focus on that .
FIIs back to their higher range place by pumping 6,181.56 crores and it was an clear indication for strong bulls market and DIIs just sold 2035.2 crores .
Coming to global markets :- US and UK markets closed positive yesterday .
Amazon and Alphabet (google) came with very good results after market.
Currently Dow Jones and Nasdaq futures are trading in positive and UK futures are trading positive.
All Asian markets are trading with positive bias.
SGX Nifty up by 50 points as of now.
Coming to India :- Today our markets may open gap-up based on SGX Nifty gain and global markets clues.
Yesterday when Nifty and Bank Nifty rallied first 30minutes after huge -up and then consolidated and today if our markets open with huge gap up then expect less moves and more consolidation.
If Nifty open above ATH then wait for sometime to hold above ATH if it fails then expect some booking or consolidation.
We have only one day to go for expiry but still premiums are very high so expect premium erosion today with some sharp moves on both sides.
The one who is looking for support and resistance based on OI data :- 14,700 CE is showing highest which act as strong resistance but ATH is very strong resistance so keep a eye on that also and support at 14,600 & 14,500.
Bank Nifty may trade in between 33,500 to 35,000 and if it breaks 35k then expect some more rally.
All The Best , Trade With Discipline.
BONFIRETRADER