74. Pre Market Analysis - March 22 , 2021
Friday Nifty closed in green after after 5 days of selling pressure.
The way markets bounced back on friday is one of the good sign for bulls rally but we cant decide with one day rise so lets wait for todays market .
Reliance , HUL , ICICI Bank , ITC , Baja Finance , NTPC , Tata steel are the top performed stocks which helps Nifty to closed in green .
FIIs and DIIs were both on buying side after long time as FIIs bought 1418.43 crores and DIIs bought 559.62 crores.
If Reliance breaks 2100 then next resistance level will be 2200 and if it breaks 2200 also then expect reliance at ATH and if Reliance breaks these levels then we can Nifty to get into action.
Banking stocks are performed well on Friday except HDFC Bank and Kotak Bank. and if HDFC Bank and Kotak Bank come into action then we may see some bull rally on Bank Nifty.
Keep a eye on Dow Jones and SGX Nifty , because our Indian markets always follow those 2 markets and any fall on those markets we may see severe selling pressure on our markets.
Indian Covid 2nd wave cases also increasing day by day and if you of the states are planning to put lockdown if this happen then we may see severe selling pressure on our markets.
Coming to global markets :- US and UK markets closed lower on Friday and currently Dow Jones and UK futures are trading at lower.
All Asian markets are trading at lower and Nikkei Japanese market is down by 1.4%.
SGX Nifty by just 4 points as of now.
Coming to India :- Today our markets may open with flat based on SGX Nifty and global clues.
Seems markets are again showing signals to selling side due to weak global clues and remember bank Nifty had a strong support at 33600 until it breaks that level we can expect consolidation or pull backs like Friday , once it breaks then we may see severe selling pressure.
Get ready for one more interesting day with weak global clues and heavy weightage stocks pushups and wait for first 20mins to get direction and expect one sell off in the morning and after that markets might recover towards upside and based on UK markets opening afternoon session will be played.
Today we may see some divergence between Nifty and Bank Nifty so if dont know how to trade in divergence markets better trade on individual stocks.
The one who is looking for support and resistances based on OI data :- Nifty had a resistance 14,850 and 15000 and support at 14350 which Fridays low and strong pull back and once it breaks then we my see severe fall today.
Bank Nifty had a resistance at 34650 and 35,000 will be the crucial levels for upside and strong support at 33600 and once it taken out then we can expect more than 400 points fall in single day.
All The Best , Trade With Discipline.