PRE MARKET ANALYSIS OF NIFTY AND BANK NIFTY FOR 29 JAN 2024

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29 Jan 2024
WORLD MARKETS
1. US markets are consolidating with a bullish bias.
2. Europe and Asia has turned bullish.
INDIA VIX AND GIFT NIFTY
1. India VIX is below 14 indicating reduction in volatility.
2. GIFT Nifty is indicating a 100 points down tick at 21250 levels. This amounts to 44500 levels for bank nifty.
INDEX HEAVY WEIGHTS
1. HDFC Bank is in oversold condition. 1420 is a very good support. Any break of 1420 will be very bearish for a tgt of 1350.
2. ICICI Bank has good support at 1003. Any break of 995 will be bearish. It has a tgt of 1021.
3. Reliance is looking bullish it has taken support at 20 SMA. 2740 will be a strong resistance.
UP COMING EVENTS
1. There will be Fed rate decision probably on 30-31 Jan 2024.
2. There will be Quarterly result of Meta, Microsoft and other major companies.
3. There is Indian Budget presentation on 01 feb 2024 by the finance minister.
3. These factors will keep the markets very volatile.
ANALYSIS
1. Bank Nifty has under performed the Nifty due to HDFC Bank falling continuously.
2. Nifty looks more stable compared to Bank Nifty.
3. Ahead of Budget which is an election budget, we may see some pre budget rally.
4. So need to be careful as far as going short in market.
TADING PLAN
1.NIFTY OPEN BETWEEN 21410 - 21250 : Buy any dip to 21250 and move above 21320 levels.
2.NIFTY OPEN ABOVE 21400 : Wait for a consolidation between 21250 - 21350 and break above 21400 levels.
3. NIFTY OPEN BELOW 21260 : Wait for a consolidation and break below 21200.
4. BANK NIFTY OPEN BETWEEN 45061 - 44700 : Buy any dip to 44700 and move above 44800 and break out.
5.BANK NIFTY OPEN ABOVE 44061 : Wait for a consolidation and break above 45250 decisively. Any consolidation at 44100 is a buy.
6. BANK NIFTY OPEN BELOW 44670 : Wait for a consolidation and break below 44400 decisively. Any rally to 44800 is a sell.

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.