PRE MARKET ANALYSIS FOR NIFTY AND BANK NIFTY FOR 05 JUN 2023
05 JUN 2023
1. All the world markets have pulled back with 1.5 -2 % gain on indices. This may be due to the US debt ceiling resolution which averted the US sovereign default which otherwise could have rattled lot of world economies. Also US un employment data came above expectation giving way for a hope of pause in rate hike by fed later in this month.
SGX NIFTY AND INDIA IVX
1. The effect of US move can be seen on SGX Nifty which is showing 88 points uptick at 18717 fut. This amounts to 18620 spot. Also Bank Nifty may be expected to open at 44177. India IVX is at 11 which indicate low volatility and scope for an up move.
INDEX HEAVY WEIGHTS
1. HDFC Bank is taking support at 1598 levels. Any break of this will take HDFC Bank to 1575 which is 200 SMA . It has strong resistance at 1630. Any break of 1630 will get us 1650. If HDFC Bank take support at 1600 in the morning session, then we can see 1610. Tomorrow. If it gap open and sustain above 1610, then we can see 1614. Any weakness below 1610 can be sold into for a tgt of 1605.
2. ICICI Bank on the other hand is looking bearish. It has strong resistance at 943.75. Any pull back to 940.8 can trigger a sell off to 935 levels and below. However if it gap open above 943.5, then we can see 948 levels.
3. Reliance has support at 2445 levels. Resistance can be seen at 2470 levels. Any gap up above 2470 and consolidation can trigger a move to 2485 levels. Any break below 2445 can get us 2335.
Analysis.
1. Nifty is expected to gap open above 18600. That is a positive. However after a 100 point gap up, we have to see whether nifty can sustain it. If it sustain, then we can see a range bound market after gap up. Any weakness below 18600 can be sold into for a tgt of 18525. Any consolidation above 18560 we can again see a pull back to 18620 levels.
2. Bank Nifty is expected to gap up to 44177. If it happens, then any weakness at 44200 can be sold into for a tgt of 44080 - 44050. However if Bank Nifty open above 44013 - 44090, wait for a dip to 44013 to buy for a tgt of 44135 - 44215
TRADING PLAN.
1. I remain bullish on both the indices.
2. In Nifty any gap up to 18620 -18630 and any weakness below 18600 i will sell for a tgt of 18525. You get 75 points. Any flat opening and move above 18560 will be a buying opportunity for a tgt of 18620.
3. Bank Nifty if it gap up to 44200 levels, any weakness below 44200 can be sold into for a tgt of 44080 - 44013 levels.
4. Any opening at 44050 levels and weakness below 44000 will be a selling opportunity for a tgt of 43860.
5. Any opening above 44050 and consolidation at these levels and a move up can get us 44100 and 44200 levels.
I AM NOT A SEBI REGISTERED TRADER. THIS INFORMATION IS FOR EDUCATION PURPOSES ONLY. PLEASE CONSULT YOUR REGISTERED FINANCIAL ADVISOR FOR ANY TRADE RELATED QUERIES.
1. All the world markets have pulled back with 1.5 -2 % gain on indices. This may be due to the US debt ceiling resolution which averted the US sovereign default which otherwise could have rattled lot of world economies. Also US un employment data came above expectation giving way for a hope of pause in rate hike by fed later in this month.
SGX NIFTY AND INDIA IVX
1. The effect of US move can be seen on SGX Nifty which is showing 88 points uptick at 18717 fut. This amounts to 18620 spot. Also Bank Nifty may be expected to open at 44177. India IVX is at 11 which indicate low volatility and scope for an up move.
INDEX HEAVY WEIGHTS
1. HDFC Bank is taking support at 1598 levels. Any break of this will take HDFC Bank to 1575 which is 200 SMA . It has strong resistance at 1630. Any break of 1630 will get us 1650. If HDFC Bank take support at 1600 in the morning session, then we can see 1610. Tomorrow. If it gap open and sustain above 1610, then we can see 1614. Any weakness below 1610 can be sold into for a tgt of 1605.
2. ICICI Bank on the other hand is looking bearish. It has strong resistance at 943.75. Any pull back to 940.8 can trigger a sell off to 935 levels and below. However if it gap open above 943.5, then we can see 948 levels.
3. Reliance has support at 2445 levels. Resistance can be seen at 2470 levels. Any gap up above 2470 and consolidation can trigger a move to 2485 levels. Any break below 2445 can get us 2335.
Analysis.
1. Nifty is expected to gap open above 18600. That is a positive. However after a 100 point gap up, we have to see whether nifty can sustain it. If it sustain, then we can see a range bound market after gap up. Any weakness below 18600 can be sold into for a tgt of 18525. Any consolidation above 18560 we can again see a pull back to 18620 levels.
2. Bank Nifty is expected to gap up to 44177. If it happens, then any weakness at 44200 can be sold into for a tgt of 44080 - 44050. However if Bank Nifty open above 44013 - 44090, wait for a dip to 44013 to buy for a tgt of 44135 - 44215
TRADING PLAN.
1. I remain bullish on both the indices.
2. In Nifty any gap up to 18620 -18630 and any weakness below 18600 i will sell for a tgt of 18525. You get 75 points. Any flat opening and move above 18560 will be a buying opportunity for a tgt of 18620.
3. Bank Nifty if it gap up to 44200 levels, any weakness below 44200 can be sold into for a tgt of 44080 - 44013 levels.
4. Any opening at 44050 levels and weakness below 44000 will be a selling opportunity for a tgt of 43860.
5. Any opening above 44050 and consolidation at these levels and a move up can get us 44100 and 44200 levels.
I AM NOT A SEBI REGISTERED TRADER. THIS INFORMATION IS FOR EDUCATION PURPOSES ONLY. PLEASE CONSULT YOUR REGISTERED FINANCIAL ADVISOR FOR ANY TRADE RELATED QUERIES.