67. Pre Market Analysis - March 02 , 2021
Yesterday Nifty closed with a gain of 235 points and Bank Nifty closed with a gain of 490 points
After opening with a huge gap-up markets failed to move further high but buyers didnt giveup so markets went to consolidation and closed with gaining only.
Heavy weightage stocks likes HDFC Twins , Kotak Bank , Infy , Reliance etc.. performed well.
India Vix came to 25.5 , on Friday it was 28 but now it fell upto 25 and wait for it fall upto below 20 and below 20 is good sign for bulls market.
FIIs bought only 125.15 crores and DIIs sold only 194.88 crores and it was very less number so markets are still cautious .
Yesterday gap-up is not only buying pressures and it was a short covering from Friday sellers also so thats the reason even FIIs number low.
Retailers will struggle for next coming days with new rules of SEBI about leverage and one of the major reason for yesterday volatility with volume.
We have clearly seen the less volume moves of yesterday due to SEBI new rules.
The one who is trading with volume analysis they might sitting with dilemma so from onwards learn how to trade with less volumes and it is better for future trading also and the solution for retailers about this new rule is , they should move to stock options or index options or else trade with higher capital and these are only reasons to make good money on intraday.
Coming to global markets :- US and UK markets are closed with higher on yesterday.
Currently Dow jones , Nasdaq and UK futures trading with flat in positive.
All Asian markets are higher.
SGX Nifty is up by 98 points as of now.
Coming to India :- After a black day Friday looking at the way global markets recover and our markets are started recover and today we may see gap-up opening based on SGX Nifty and global markets clues.
Consider Friday high as strong resistance and once it breaks then it is an clear sign for bulls recovery market.
If Nifty open with a gap up of more than 200 points and it is best opportunity to sell at higher levels so expect some selling pressure at higher levels if markets open with huge gap-up and expect one more volatile day with some wild moves today better small players stay away if you dint see any strong move.
The one who is looking for support and resistances based on OI data :- Nifty 15000 CE was added more contracts which act as dynamic resistance and support at 15,500 along with observe Friday low.
Bank Nifty had a strong resistance at 36k which is added more contracts and support at 35k.
All The Best , Trade With Discipline.
BONFIRETRADER