Index-Analysis Report for 05-03-2021

Index analysis report for 05-03-2021

· 1 min read
Index-Analysis Report for 05-03-2021

Fundamental News

  • US 10 Year Bond yield shot up to 1.55%.
  • Gold fell below US$1700.

Global Markets

  • US markets closed negative. ❌
  • Asian markets are trading neutral to negative bias. ❌
  • SGX Nifty is showing a gap down of about 200 points. ❌

Pre-Market View

SGX Nifty indicates a gap-down opening. Hence, the plan would be same as the day before. Wait for the gap to be filled by short covering and find favourable setups to the downside. However if the price starts falling further, short positions can be taken after a retracement to the upside.

Intraday Trade Setups

Triangle Breakout:

  • Both Nifty and Bank-Nifty opened gap-down of 0.5% and 0.7% respectively.
  • It was very volatile during the opening before it rallied up to close the gap.
  • While nifty broke its intraday high, bank-nifty was weaker than nifty and faced stiff resistance at its intraday high.
  • After taking resistance at previous day's close, nifty fell down and both the markets consolidated in a range creating a triangle.
  • At 01:35 pm, both of them broke below the triangle consolidation.

Trade Plan for Next Session:

  • Today markets closed negative after opening gap-down.
  • Today, FIIs were net sellers for 2014 crores while DIIs were net sellers for 1191 crores.
  • Markets are just bouncing around in daily candles, consolidating in a range.
  • If markets open gap-down or flat, markets may trend again to the downside.
  • If markets open gap-up, they may face resistance at upper level and fall again to remain range-bound.