Nifty and Bank-NIfty Index Analysis for 09-04-2021

Nifty and Bank-nifty index analysis report for 09-04-2021

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Nifty and Bank-NIfty Index Analysis for 09-04-2021

Fundamental News

  • There was a news report that said Mutual Funds are seeing inflows for the first time in last 9 months.

Global Markets

  • US markets closed higher. โœ…
  • Asian markets are mixed.
  • SGX Nifty is almost flat.

Pre-Market View

SGX NIfty indicates almost flat opening. we have only one positive cue from global markets. Markets had fallen in the second half in the last trading session. Hence, for the markets to recover, it could take some time, contracting first and then bursting out.

Intraday Trade Setups

Reversal Trade:

  • Nifty opened flat whereas niftybank opened gap-down.
  • The first hour of the market was really sideways.
  • At 11:35 am, nifty broke out of the shorter timeframe trendline.

Pullback Trade:

  • At 11:35 am, bank-nifty broke out of the shorter timeframe trendline.
  • Bank-nifty was the stronger index and hence was the ideal long trade.

Range-Breakout Trade:

  • The long trade didn't have a good follow through and price didn't really go anywhere for about an hour.
  • At 01:35 pm, nifty broke out of its range.

Triangle-Breakout:

  • At 01:30 pm, nifty bank broke below the triangle structure.

Market Breadth:

  • Nifty pharma was the biggest gainer.
  • Nifty bank was the laggard.
  • Cipla was the top gainer in Nifty 50 with 5.34% gain.
  • BajajFinance was the top loser in Nifty 50 ending at -3.01%.
  • Nifty 50 advances: 22
  • Nifty 50 declines: 26

Trade Plan for Next Session:

  • Today nifty and nifty-bank both were pretty much range-bound with little to no movement intraday. Nifty bank closed negative owing to its gap-down opening.
  • If market opens flat or gap-up, have a long bias.
  • If market opens gap-down, have a sideways to short bias.