82. Pre Market Analysis - April 05 , 2021
A strong pull back on markets and corrected almost 176 points in Nifty and 520 points in Sensex and 554 points in Bank Nifty on last Thursday.
Metal stock are out performed along with IT stocks , Banking stocks except HDFC bank , Auto stocks are performed well.
FIIs back to the buying side by pumping 149.41 crores and DIIs sold 296.84 crores in cash market and it was small number so last day rise is mixed with short covering and buying pressure and mainly short covering is more than buying pressure.
Watch Nifty with 1 day time frame as it is consolidating from Feb2 with a wide range of 14,250 to 15,300 and Thursday Nifty started moving higher from lower level so we can expect one more swing move up to 15,300 of coming days.
Bank Nifty is trading in between the range of 33,000 to 34,000 and once it breaks then the next resistance will be at 35,000.
India VIX closed below 20 which is good for bulls .
Last quarterly results IT stocks results shot up more than 20% and once quarterly results came with good number still they started booking their profits and this time US dollar is maintaining at good strength and all IT stocks are performed well from last 2 quarters and this month TCS , Infosys , Wipro are declaring their results of next week so we may see some strong action on these stocks and sector.
HDFC Bank is the first bank which is declaring the result on April 17 and 24 will be ICICI Bank so banking stocks may performed but we have RBI policy on Wednesday so we should wait for the policy announcement and if it is good then along with results points we may see higher moves on Bank Nifty.
Corona Virus cases are slowly increasing in our India so it may hold the investors to invest but remember we have vaccine now expect less fall or consolidation and don't expect big fall like march 2020 .
Coming to global markets :- US markets closed at higher on last Friday as Biden came with a announcement about US jobs with good number and UK markets closed on Friday.
Currently Dow Jones , Nasdaq are trading at higher and UK markets are not trading due to holiday.
Most of the Asian markets are holiday today.
SGX Nifty touched 15k in the morning and now it down by 100 points and trading at 14,900.
Coming to India :- Today our markets may open with gap-down based on SGX Nifty and muted on some global markets.
Today is one of the difficult day for our markets as we are sitting with many news days, on one side we have corona cases and IT stocks results and RBI policy and on the side we have 2 different clues that SGX Nifty is trading in negative and Dow Jones is trading in positive and other side some global markets are holiday today.
So expect less volume moves today and focus on Individual stocks of Metal and IT and Auto sector which will give better opportunities rather than trading on index with divergence clues.
The One who is looking for support and resistances based on OI data :- Nifty 15,000 CE was added more contracts which will act as strong resistance of this week expiry and 14,700 PE was added more contracts which will act as strong support .
Bank Nifty may trade in between the range of 34,000 and 33,000.
All The Best , Trade With Discipline.