Nifty and Bank-NIfty Index Analysis for 04-05-2021

Nifty and Bank-nifty index analysis report for 04-05-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 04-05-2021

Fundamental News

  • Auto companies declared very bad monthly auto sales.

Global Markets

  • US markets ended mixed.
  • Asian markets are mixed.
  • SGX Nifty is up by 50 points. ✅

Pre-Market View

SGX NIfty indicates a gap-up opening. If it sustains the gap, we can go higher. Hence opening drive setups to the upside may be in play. To the downside in the first half, the risk-reward is no that good as gap-up is not too high.

Intraday Trade Setups

Reversal Trade:

  • Both Nifty and Bank-Nifty both opened gap-up of 0.5%.
  • Nifty immediately had a sell-off. Bank-nifty more or less held its level.
  • At 09:45 am, both nifty and bank-nifty created a hammer candle after a bear leg.
  • Late in the day, both the markets had a trend reversal again.
  • At 01:00 pm and 01:10 pm, nifty and bank-nifty created opportunity for a short trade.

Pullback Trade:

  • Nifty trended to the downside in the first half whereas bank-nifty held its level.
  • At 11:05 am, bank-nifty broke out of its triangle consolidation.
  • At 11:25 am, bank-nifty after pulling back closed on a green candle.

Range-breakout:

  • After a strong trend reversal in the second half, both the markets retraced a bit.
  • At 02:30 pm, both the markets gave a strong closing below their intraday lows.

Market Breadth:

  • Nifty psu bankwas the only gainer.
  • Nifty pharma was the lagger.
  • SBILIFE was the top gainer in Nifty 50 with 2.65% gain.
  • TATACONSUM was the top loser in Nifty 50 ending at -4.30%.
  • Nifty 50 advances: 16
  • Nifty 50 declines: 34

Trade Plan for Next Session:

  • Today both the markets trended to the downside in the second half.
  • Today, FIIs were net sellers for 1772 crores while DIIs were net buyers for 987 crores.
  • Market is at a higher timeframe support. Markets have expanded, therefore the swings would be large, providing good intraday setups.
  • If market opens flat or gap-up, markets can go higher to upper resistances.
  • If market opens gap-down, there can be another bear trend.