PRE MARKET ANALYSIS OF NIFTY AND BANK NIFTY FOR 06 FEB 2024

5 Feb

06 Feb 2024
WORLD MARKETS
1. World markets are consolidating with a negative bias. Presently US indices are trading in red.
INDIA VIX AND GIFT NIFTY
1. India VIX has increased by 6 % to 15.6. This indicates increased volatility.
2. GIFT Nifty is indicating 35 points uptick at 21750 levels. This amounts to 45900 for bank nifty.
INDEX HEAVY WEIGHTS
1. HDFC Bank is looking negative. But it has closed above 1440 which was yesterday's low. Any break of 1440 again will be bearish.
2. ICICI Bank on the other hand has made a hammer pattern. This indicates bullishness.
3. Reliance is again consolidating but could not break out.
ANALYSIS
1. world markets are currently trading in red.
2. Nifty is consolidating with a positive bias and Bank nifty is consolidating with a negative bias.
TRADING PLAN
1. NIFTY OPEN BETWEEN 21700 - 21835 : NO TRADE.
2.NIFTY OPEN ABOVE 21850 : Sell any consolidation and break below 21800.
3.NIFTY OPEN BELOW 21700 : Sell any rally to 21800 and break below 21680 decisively.
4. BANK NIFTY OPEN BETWEEN 45950 - 45700 : NO TRADE.
5. BANK NIFTY OPEN ABOVE 45950 : Wait for a consolidation and break above 46080.
6.BANK NIFTY OPEN BELOW 45700 : Wait for a consolidation and break below 45600. Sell any rally to 45700.

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.