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.