Index-Analysis Report for 08-03-2021

Index analysis report for 08-03-2021

· 2 min read
Index-Analysis Report for 08-03-2021

Fundamental News

  • US published strong jobs data.

Global Markets

  • US markets are higher. ✅
  • Asian markets are higher. ✅
  • SGX Nifty is showing a gap up of 120 points. ✅

Pre-Market View

SGX Nifty indicates a gap-up opening. If the initial first candles are clean, opening drive setups can be taken. However the gap-up shouldn't be too much. If it is, pole flag setups can be taken to the long side after an initial sell-off.

Intraday Trade Setups

Opening Drive:

  • Both Nifty and Bank-Nifty opened gap-up of around 0.3%.
  • There was a strong bullish candle in both of them.
  • At 09:15 am, bank-nifty closed strong on a power green candle.
  • Since bank-nifty was above resistance, it was the ideal candidate.

Range Breakout:

  • At 09:50 am, nifty broke out of its range after creating inside bars.
  • There was a similar upmove in bank-nifty, but it was a pullback buy.

Retracement Trade:

  • Both nifty and bank-nifty after a rally in the first half, gave up all their gains and created a strong impulse move to the downside.
  • Then both of them retraced. In such a scenario, price goes down again to retest the recent low.
  • At 12:05 pm, both of them broke below the trendline and continued the downmove.

Trade Plan for Next Session:

  • Today markets again remained range-bound with large volatile movements.
  • Today, FIIs were net sellers for 1494 crores while DIIs were net sellers for 483 crores.
  • Again markets failed to make any directional move. It seems as if markets may move only after expiry.
  • If markets open gap-down or flat, markets may trend to the downside.
  • If markets open gap-up, they may face resistance at upper level and fall again to remain range-bound.