Skip to main content

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.
  24. stockmarketadvisory.in

Comments

Post a Comment

Popular posts from this blog

Pre- Market Analysis (5th May 2022)

U.S Markets closed higher yesterday. Asian markets are higher. SGX nifty is up 150 points. Yesterday was a very tricky and unexpected session. As soon as Market opened there was a continuous selling. Market was falling left , right and center without taking any support. I was wondering why is the Market going against the global cues Then we got the news about RBI Governer press conference. So some informed people already knew about this rate hike. Hence there was a sudden selling in the markets. RBI hiked repo rate by 40 basis points and Cash Reverse ratio by 50 basis points. Repo rate is the rate at which banks borrow money from RBI. When the rate is increased banks borrow money at higher cost and in turn loans also get costlier. This slows down the growth and liquidity in the Market temporarily. Cash reserve ratio is the interest free deposit money which banks have to keep with RBI. RBI uses that money without having to pay any interest on it. Increasing CRR means RBI is
Post a Comment
Read more

Pre - Market Analysis (18th April 2022)

U.S Markets closed lower on Thursday. Asian markets are all lower. Dow futures are lower right now. SGX Nifty is down 250 points. Indicating a huge gap down at the open. Reason is the Global markets underperformance plus not so good corporate results. Infosys has disappointed and missed earnings by street estimates. Infy ADR was down 9% in last 2 trading sessions in U.S Hdfc bank also missed earnings but asset quality has been improved. Today we can expect huge gap down openimg in infy. Hdfc bank has limited downside left because it has already fallen a lot after the merger news. 17150-17200 is a strong support on Nifty and this is where 200 DMA kicks in. If you are a Bull this is a large support area. Markets are oversold and this offers a good opportunity to go long. Nect support comes in at 17k. If global markets keep declining then no support would work. Bank Nifty 200 DMA kicks in at 36800. Bank Nifty looks much stronger than Nifty currently as IT isn't included in
Post a Comment
Read more

Pre - Market Analysis (11th April 2022)

U.S Markets closed mixed on Friday. Dow Jones closed slightly higher. S&P 500 was flat and Nasdaq is very weak. Right now , Dow futures are lower. SGX Nifty is down 100 points. So we are in for a gap down opening today. Friday was a quite interesting day. As expected , RBI policy was a status quo. Nifty broke Thursday low of 17640 and traded below for quite some time. And then for a short squeeze. All the shorts were trapped and we had a big rally. Most importantly , India VIX was down 7% on Friday. I expect markets to consolidate between 17600 to 18100 for a while. I do not see a reason to be excessively bearish now. Markets went from 17700 to 18100 because of hdfc twins. And then crashed to 17600 because of these both stocks. These both stocks have given up all of their gains and are back to Pre merger levels. There is very limited downside now for these stocks and expecting these stocks to bottom out soon 17500 to 17600 is a strong buy zone on Nifty. Also earnings se
Post a Comment
Read more