PRE MARKET ANALYSIS FOR NIFTY AND BANK NIFTY FOR 18 DEC 2023
18 Dec2023
WORLD MARKETS
1. US Markets are looking tired and over bought. While NASDAQ has still some steam left.
2. Europe has already started pulling back.
3. Asia is mixed.
INDIA VIX AND GIFT NIFTY
1. India VIX is above 13 indicating increased volatility. Some correction may be in order.
2. GIFT Nifty is indicating a 80 points down tick at 21375.
INDEX HEAVY WEIGHTS
1. HDFC Bank is looking bullish. It has good sp at 1635. The next tgt will be 1675. Any break of 1635 will be bearish for short term.
2. ICICI Bank has good sp at 1010. Otherwise it is looking very bullish.
3. Reliance has good sp at 2490 and its next tgt is 2521.
4. IT heavy weights are on fire.
ANALYSIS
1. We are in Dec. Usually there will be a rally in Dec. Trading activity may decline in US due to christmas and New year. People may like to open afresh in new year and hence may not like to keep position.
2. US and Indian Markets have reached the peak of interest rate hike. So we may see interest rate reduction in future monetary policy meets. So easy money will come through. So economic activity may pick up.
3. There will some small violent pull backs, but the overall market direction will be bullish.
4. So better to trade long and avoid shorts. However expert traders ride both ways.
TRADING PLAN
1.NIFTY OPEN BETWEEN 21400 -21535 : Buy any dip to 21400.
2. NIFTY OPEN ABOVE 21535 : Wait for a dip to 21400.
3. NIFTY OPEN BELOW 21400 : Wait for a consolidation and if indices move above 21400 buy. If indices break below 21320 then sell.
4. BANK NIFTY OPEN BETWEEN 48000 - 48300 : Buy any dip to 48000.
BANK NIFTY OPEN ABOVE 48300 : Wait for a dip to 48000.
6. BANK NIFTY OPEN BELOW 48000 : Wait for a break down below 47800. However if the Indices rise above 48000 after consolidation between 47800 - 48000, then buy.
DISCLAIMER
1. I AM NOT A SEBI REGISTERED TRADER. THIS INFORMATION IS FOR EDUCATIONAL PURPOSES ONLY. PLEASE CONSULT YOUR REGSITERED FINANCIAL ANALYST FOR ANY TRADE RELATED QUERY. THE AUTHOR OF THIS ARTICLE HOLDS NO LIABILITY FOR ANY TRADE TAKEN BY THE READER.
WORLD MARKETS
1. US Markets are looking tired and over bought. While NASDAQ has still some steam left.
2. Europe has already started pulling back.
3. Asia is mixed.
INDIA VIX AND GIFT NIFTY
1. India VIX is above 13 indicating increased volatility. Some correction may be in order.
2. GIFT Nifty is indicating a 80 points down tick at 21375.
INDEX HEAVY WEIGHTS
1. HDFC Bank is looking bullish. It has good sp at 1635. The next tgt will be 1675. Any break of 1635 will be bearish for short term.
2. ICICI Bank has good sp at 1010. Otherwise it is looking very bullish.
3. Reliance has good sp at 2490 and its next tgt is 2521.
4. IT heavy weights are on fire.
ANALYSIS
1. We are in Dec. Usually there will be a rally in Dec. Trading activity may decline in US due to christmas and New year. People may like to open afresh in new year and hence may not like to keep position.
2. US and Indian Markets have reached the peak of interest rate hike. So we may see interest rate reduction in future monetary policy meets. So easy money will come through. So economic activity may pick up.
3. There will some small violent pull backs, but the overall market direction will be bullish.
4. So better to trade long and avoid shorts. However expert traders ride both ways.
TRADING PLAN
1.NIFTY OPEN BETWEEN 21400 -21535 : Buy any dip to 21400.
2. NIFTY OPEN ABOVE 21535 : Wait for a dip to 21400.
3. NIFTY OPEN BELOW 21400 : Wait for a consolidation and if indices move above 21400 buy. If indices break below 21320 then sell.
4. BANK NIFTY OPEN BETWEEN 48000 - 48300 : Buy any dip to 48000.
BANK NIFTY OPEN ABOVE 48300 : Wait for a dip to 48000.
6. BANK NIFTY OPEN BELOW 48000 : Wait for a break down below 47800. However if the Indices rise above 48000 after consolidation between 47800 - 48000, then buy.
DISCLAIMER
1. I AM NOT A SEBI REGISTERED TRADER. THIS INFORMATION IS FOR EDUCATIONAL PURPOSES ONLY. PLEASE CONSULT YOUR REGSITERED FINANCIAL ANALYST FOR ANY TRADE RELATED QUERY. THE AUTHOR OF THIS ARTICLE HOLDS NO LIABILITY FOR ANY TRADE TAKEN BY THE READER.
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