Bank Nifty View on 29th Jan 2021

Check out what today's market hold!

· 2 min read
Bank Nifty View on 29th Jan 2021

Fundamental News

  • Markets more or less waiting for the event, i.e, budget.

Global Markets

  • US markets closed significantly lower.
  • Asian markets are down
  • SGX Nifty is down by about 80 points

Pre-Market View

SGX nifty again indicates a significant gap-down opening. As discussed previously, there could be a potential short covering on cards if the gap-down is too significant as bears would like to cover before the budget. However in a bearish market, long positions to be taken on price-action confirmation. However, weekly expiry could be party spoiler as markets tend to be in a range most of the time, especially after a volatile week.

Intraday Trade Setups

Range Breakout:

  • Both Nifty and bank-nifty opened a slight gap-down.
  • At 10:15 am, bank-nifty broke out of its intraday high. But it turned out to be a false signal as it had to support from nifty.
  • At 12:35 pm, nifty broke out of its intraday low creating a short opportunity. Nifty was weaker than bank-nifty today.

Zone-Rejection:

  • At 12:25 pm, bank-nifty after creating a double top came down hard with a power candle. Such candles tend to have good follow through in indices.

Trade Plan for Tomorrow:

  • Today was a complete range-bound day for the markets.
  • Today also FIIs were net sellers for 3712 crores while DIIs were buyers for 1736 crores, surprisingly.
  • For both nifty and bank-nifty, tomorrow's market could also be range-bound or a partial retracement to the upside from covering of shorts.
  • The real direction, however, could come only after the budget.
  • If market opens flat or huge gap-up, only then a selling scenario is possible.
  • Markets can remain range bound for most part and a short covering can come in the later half of the markets. So watch out for the opportunity.