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Pre - Market Analysis (18th May 2021)

  1. U.S Markets closed a bit lower Yesterday.
  2. Right now U.S Futures and Nasdaq Future's are trading higher.
  3. SGX Nifty is Indicating a big gap up above 15100 today.
  4. Yesterday we witnessed a fantastic rally in both the Indices.
  5. Nifty and Bank Nifty both have Outperformed highly.
  6. Bank Nifty in particular was the star of the show Yesterday.
  7. Bank Nifty closed 1300 Points higher Yesterday.
  8. It was a big short covering in all the Banking stocks.
  9. The short covering was led by PSU Banks.
  10. FII's were also short in our Markets previously and they are still net short on our Markets.
  11. This short covering took the indices even higher Yesterday.
  12. Today if we sustain above 15100 for an hour this short covering will increase further.
  13. 15000 has been acting as a big resistance from quite some time now.
  14. Sustaining above this level with follow through indicates further strength in our Markets
  15. Shorting is not advisable as of now.
  16. India VIX for the first time closed below 20 Yesterday.
  17. Even now FII's are short on our Markets.
  18. So there's a high scope of Short covering still existing.
  19. At one Point of time it was trading near 19.6 down 4%.
  20. 34000 is a critical level for Bank Nifty and the recent high was about 34300 for Bank Nifty.
  21. Once both these levels are taken the rally will intensify.
  22. Bank Nifty might continue to outperform today.
  23. Nifty might Trade between 14980-15180 today.


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