- India approved two vaccines for coronavirus
- Monthly-auto sales data has come positive
- US market closed positive on Friday
- SGX Nifty was trading at all-time high before the start of today's opening session
- Asian markets are mixed.
Bank-Nifty has been trading sideways in a tight range of less than 500 points for the last four trading sessions. Therefore any break to the downside or to the upside of the range may cause the price to trend in intra-day.
Intraday Trade Setups
Bank-nifty opened with a gap up of more than 0.6%. Usually, such gaps are filled in intra-day in bank-nifty. There were signs of sustaining the gap in the first hour in bank-nifty whereas nifty was testing its lows of the opening range with a triangle formation in 1-min timeframe.
Bank-nifty failed to make any higher-highs and eventually made a lower-high making it a good entry point for short position.
After falling more than 600 points from its intra-day high, bank-nifty took support at 31000 round-level. Then price created a rising wedge which is a continuation pattern in a bearish market. The top of the wedge was marked by multiple failing attempts to break and close above 31225.
The price had retraced to almost Fibonacci level of 0.618% of the intraday fall and rejected it which provides extra confirmation.
Trade Plan for Tomorrow:
Price has created a W pattern, also known as double-bottom at level of 31000. If price breaks and closes below 31000, there can be more continuation to the downside as there is a correction pending in the weekly charts.
If market opens gap-down, there is resistance at 31300. If price is unable to close above this level, we are looking at a side-ways to bearish market.
If market opens gap-up and sustains the gap taking support at 31300, the market might turn sideways-bullish. The next intra-day resistance would be 31500.