Nifty and Bank-NIfty Index Analysis for 06-04-2021

Nifty and Bank-nifty index analysis report for 06-04-2021

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Nifty and Bank-NIfty Index Analysis for 06-04-2021

Fundamental News

  • Crude has fallen by more than US$ 2 per barrel.

Global Markets

  • US markets closed at all time high. โœ…
  • Asian markets are mixed.
  • SGX Nifty is slightly down.

Pre-Market View

SGX NIfty indicates a slight gap-down opening.We have just one positive cue from global markets. It is more than likely to test previous session's low, accumulate there or just bounce.

Intraday Trade Setups

Reversal Trade:

  • Both Nifty and Bank-Nifty opened gap-up of 0.6% and instantly gave up some gains and then some.
  • Again both the markets recovered all the loss. After such a volatile market, price-action generally compresses and remains restricted to a range.
  • At 12:15 pm, nifty created a bearish almost doji candle and then a solid red bar creating a reversal trade.

Triangle breakout:

  • Nifty-bank was the weaker index today as the price action clearly showed.
  • At 12:15 pm, nifty bank broke out its triangular pattern.

Market Breadth:

  • Nifty metal and nifty pharma were the biggest gainers.
  • Nifty bank was the leading lagger.
  • Adani Ports was the top gainer in Nifty 50 with 14.5% gain.
  • Powergrid was the top loser in Nifty 50 ending at -2.03%.
  • Nifty 50 advances: 31
  • Nifty 50 declines: 18

Trade Plan for Next Session:

  • Today nifty and nifty-bank were almost range bound.
  • Today, FIIs were net sellers for 1092 crores while DIIs were net buyers for 416 crores.
  • If market opens flat or gap-up, markets may remain volatile.
  • If market opens gap-down, the market may trend down.