Bank Nifty View on 8th Jan 2021

Check out what may happen to Bank Nifty today!

· 2 min read
Bank Nifty View on 8th Jan 2021

Fundamental News

  • Republicans supporters stormed Capitol building and clashed with Police.
  • Facebook as well as Twitter suspended Trump's account temporarily.

Global Markets

  • US markets closed mixed.
  • SGX Nifty is trading higher than yesterday's high.
  • Asian markets moved higher.

Pre-Market View

Bank-nifty has formed a doji candle in daily candle chart which may result in a potential completion of an evening star pattern. However market is in an uptrend in higher timeframe. Any short position should be taken after confirmation.

If the market opens midway between 32000 and 31600 , it is likely to remain in this range in this expiry.

Bank Nifty Analysis for 8th Jan

Intraday Trade Setups

Gap-up short:

Bank-nifty opened gap up of 0.9% with US senate elections finally out. Initial 5min candle was a bullish hammer followed by three rejection dojis. Meanwhile nifty had clearly shed some pre-market gains. Nifty dragged bank-nifty down with it.

Bank-nifty was always a potential candidate for a pole-flag pattern after opening up with a huge gap-up of 0.9%. Hence it could have been shorted at 9:35 pm for capturing any retracement(flag of pole).


Bank-nifty had a strong support at 31500-31600. At this region, between 10:20am to 10:40 am 5-min candles, there was contraction in price paving way for a high reward to risk trade. A more conservative entry was provided when price broke out of the pole-flag pattern and created a higher-low.

Rising-Wedge short:

After being rejected at intraday high with a double top formation, price formed a rising wedge pattern and in the process created a bearish-flag pattern giving extra confirmation. A short position could have been taken at the break of the trendline of the rising-wedge.

Trade Plan for 8th Jan:

If market opens flat and sustains above 31900, it may be sideways to bullish with immediate resistance at 32200 or 32160 to be precise

If market opens significant gap-up, and manages to close above 32200, it may be bullish.

If market opens gap-down, and closes below 31900, it may trend to the downside.

Market has more space for downside movement than upside. Hence go conservative on long and aggressive on short.