Nifty and Bank-NIfty Index Analysis for 10-03-2021

Nifty and Bank-nifty index analysis report for 10-03-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 10-03-2021

Fundamental News

  • Nothing significant.

Global Markets

  • US markets are higher. ✅
  • Asian markets are mixed.
  • SGX Nifty is showing a gap up. ✅

Pre-Market View

SGX Nifty indicates another gap-up opening. Hence the plan would be more or less the same as the previous day. If the gap is too high, there could be initial sell- off followed by support at previous day's levels. Hence gap-up short setup is in play.

Intraday Trade Setups

Gap-up Short:

  • Both Nifty and Bank-Nifty opened gap-up of around 0.75%.
  • The first candle was a bearish candle in both of them. Generally in such gap-up scenarios, if the first candle is a doji or bearish, there is high chance that there could be an initial sell-off.
  • At 09:20 am, the low of the first 5-min candle is breached giving a short signal.

Retracement Trade:

  • Both the markets had a short down-leg impulse followed by a retracement.
  • While bank-nifty retraced quite steeply, nifty had a fairly slow angular retracement charted by a trendline.
  • At 10:20 nifty broke below this trendline, creating a shorting opportunity.

Trade Plan for Next Session:

  • Today markets were intraday wise range-bound, but on a close to close basis, they closed positive.
  • Today, FIIs were net sellers for 15 crores while DIIs were net buyers for 447 crores.
  • Markets bounced back from today's low creating a range-bound intraday movement with good volatility. As US markets rise higher, Indian markets may resume their rally to the upside.
  • If markets open gap-up or flat, markets may trend to the upside.
  • If markets open down, they may may remain range-bound.