Nifty and Bank-NIfty Index Analysis for 07-05-2021

Nifty and Bank-nifty index analysis report for 07-05-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 07-05-2021

Fundamental News

  • HDFC to declare results.

Global Markets

  • US markets closed at day's high.
  • Asian markets are up. ✅
  • SGX Nifty is slightly up. ✅

Pre-Market View

SGX NIfty indicates a gap-up opening. If the gap-up sustains we could see a surge to the upsdie as the market was quite range-bound in previous sessions.

Intraday Trade Setups

Opening Drive:

  • Both Nifty and Bank-Nifty both opened gap-up of 0.6%
  • At 09:20 am, the high of the first green bar is taken out in both nifty and bank-nifty.

Reversal Trade:

  • Bank-nifty didn't have a good follow-through after a strong opening drive. It pulled back a bit too much, put on a lower high and continued to pull back further.
  • At 10:15 pm, bank-nifty gave a sell signal.

Range breakout:

  • At 10:40 am, nifty broke below its intraday low.

Zone Rejection:

  • At 11:40 am, nifty gave another sell-signal at intraday trend line and previous level.

Market Breadth:

  • Nifty metal was the biggest gainer.
  • Nifty psubank was the lagger.
  • TATASTEEL was the top gainer in Nifty 50 with 7.51% gain.
  • TATACONSUM was the top loser in Nifty 50 ending at -3.54%.
  • Nifty 50 advances: 33
  • Nifty 50 declines: 17

Trade Plan for Next Session:

  • Today both the markets were again quite choppy.
  • Today, FIIs were net sellers for 1142 crores while DIIs were net buyers for 632 crores.
  • If market opens gap-up, markets may trend higher.
  • If its opens flat or gap-down, watch out for price-action as there may be multiple reversals before any clear trend.