89. Pre Market Analysis - April 20 , 2021
Nifty broke the major support 14,250 on yesterday , by the end of the day it closed at 14,359 and failed to hold below 14,250 level.
Nifty fell more than 430 points but a strong 160 points pull back from days low helps to Nifty to close with a loss of 258 points only.
Bank Nifty fell 1700 points in the first 15mins and slowly recovered 900 points from days low.
Sensex was down 882 points at 47,949 points.
FIIs sold 1633.70 crores and DIIs bought 2355.56 crores.
Pharma stocks and Infosys and Wipro are the only stocks which gave support to Nifty yesterday .
We already said yesterday that any fall will be an opportunity to buy at lower levels and as you can see yesterday markets fell drastically in the first 15 minutes and after that it recovered slowly so don't think that major falls happen in the whole day , if markets open with huge gap-down then there is an possibility to recover or to go consolidation.
Till Friday global markets are positive but yesterday few of the global markets closed negative , mainly US markets closed negative due to the fear of 4th Quarter results and Tesla showed a negative sign yesterday.
Coming to global markets :- US markets closed lower yesterday and UK markets closed little bit negative.
Currently Dow Jones and Nasdaq futures are trading in positive.
Most of the Asian markets are negative and Nikkei fell 1.9% as of now.
SGX Nifty opened with a loss of 1 point , now it is up by 51 points.
Coming to India :- Today we may see flat opening with positive bias based on SGX Nifty and global clues.
Any gap-up will be an opportunity for sellers and expect one round for sellers in the morning and stay light in the afternoon as tomorrow is holiday so we may see wild swings in the afternoon session.
India VIX shot up 10% yesterday and it indicates some bearishness but few major levels of Bank Nifty and Nifty supporting the markets to move higher and once it breaks then expect sharp fall in the markets.
Nifty had a support in chart with 1day time frame at 14,250 level and Bank Nifty will take support at 30,500 level which is last Monday days low and it is very crucial so keep a eye on that.
The one who is looking for support and resistances based on OI data :- Nifty 14,500 CE was added more contracts which will act as strong resistances of this week and 14,200 PE was added more contracts which will act as strong support .
Bank Nifty any upside move possible once it breaks 32,000 and downside keep a eye at 30,500 level.
All The Best , Trade With Discipline.
BONFIRETRADER