79. Pre Market Analysis - March 30 2021
Friday Nifty closed gained 182 points , Sensex gained 568 points and Bank Nifty gained 300 points.
Metal stocks performed very well and mainly Tata steel almost gave breakout with 1 day time frame.
India VIX shot up 9% on Friday and closed at 20.65 and if it came below 20 it means there is no big bears fall in market.
FIIs sold 50.13 crores and DIIs bought 1703.14 crores , the biggest reason for FIIs low activity is , we already entered into April 1st week and this week already 4days gone with 3days holidays and now we have only 3 trading sessions for this week and after that again 3 holidays is there so if they muted for these 3 days then will get 9 holidays in trading and mainly investing money in between long holidays weekends is very risky that is the main reason they are pumping less money in the market .
Mainly we are sitting with many news Covid rises and lockdown fear , Weak FIIs , US bond yields rising , US market record highs , state Elections and year ending days so better stay light and observe the markets.
More over we need to see some weightage stocks resistances before expecting the index to bullish .
here are some stocks with strong resistances and mark these levels on your charts and observe if these stocks breaks those resistances then definitely we can expect big bullish trend in our markets.
Levels - HDFC Bank -1520 , Kotak Bank - 1800 , ICICI Bank - 600 , Axis Bank - 714 , SBIN - 366 to 373(area) , Reliance - 2000 and next level 2100 to 2150(area) . and any of these resistances taken out then expect big bulls move.
New SEBI rules wont affect to any retail trader and it will be affect to the people are manipulating the traders and Algo people so don't worry about new rule as it wont affect to our market also.
This month is very crucial for us due to announcement of quarterly results and focus on Metal , Auto , IT stocks of next two weeks.
Coming to global markets :- Dow Jones closed record high on Monday and S&P and Nasdaq closed negative . and UK closed slightly higher with flat.
Currently Dow Jones , Nasdaq and UK futures are trading with flat in negative.
All Asian markets are mixed .
SGX Nifty is up by 28 points as of now which is trading around 14,778 .
Coming to India :- Today our markets may open at 14700 based on SGX Nifty and currently we are at 14500.
If our markets open with huge -up then expect some gap-covering in the morning session and if this is not happen then markets may go to consolidation with wild moves on both sides along with huge volatility .
Call side premiums are very high compared to puts and IV is high on call side so expect some erosion on call side so be cautious to stay long in the trade on call side.
The one who is looking for support and resistances based on OI data :- 14,750 will be the resistance and support at 14,400 and 14,350.
Bank Nifty had a strong resistance at 34,000 and crucial support at 32,500.
All The Best , Trade With Discipline.
BONFIRETRADER