62. Pre Market Analysis - Feb 23 , 2021
Nifty fell 306 points on Monday and Bank Nifty fell 1000 points from intraday high
Weightage stocks like Reliance , HDFC , ICICI Bank , Axis Bank , L&T , ITC , SBIN etc. dragged Nifty.
Bank Nifty fell 250 points in first 10mins and then shot up 500 points from intraday low and created new intraday high and sellers took that intraday high as advantage and shorted the market and it fell 1000 points from intraday high.
It was pure sell on rise market , every rise has been sold yesterday.
One of the reason for severe selling is due to increase the corona virus cases in India but dont expect the crash in our markets like 2020 march because we already came out with a vaccine but the tension which is raising in investors is due to some of our states are gave a statement that they are going to play to put a lockdown in some areas.
India VIX shot up 15% in single day and it is an indication for bears markets.
Yesterday FIIs and DIIs were both on selling side as FIIs sold 893.25 crores and DIIs sold 919.88 crores.
Even global markets turned weak so expect this fall for somedays but remember our markets will recover very fast so once it turned to bulls markets definitely we may see our markets at ATHs in just few trading session but all we need is to wait for that bulls reversal sign.
Coming to Global Markets :- US and UK markets closed lower on yesterday .
Currently Dow Jones , Nasdaq and UK futures are trading at flat.
All Asian Markets are mixed.
Currently SGX Nifty is up by 80 points.
Coming to India :- our markets may open with gap-up today based on SGX Nifty and global markets clues.
If our markets open with gap-up then expecting some selling pressure at higher levels and if it breaks yesterdays low then expect further fall in our markets.
If yesterdays high have taken out with good volume then it will be an reversal sign in our markets
Premiums are high so expect some erosion with wild moves today.
The One who is looking for support and resistances based on OI data :- Bank Nifty may fall if it breaks 35k with good volume and any reversal sign if it breaks above 36k.
If Nifty breaks 14,600 then expect fall of more than 100 points and consider 14,800 & 14,900 are nearest resistances.
All The Best , Trade With Discipline.
BONFIRETRADER