Nifty and Bank-NIfty Index Analysis for 12-05-2021

Nifty and Bank-nifty index analysis report for 12-05-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 12-05-2021

Fundamental News

  • US to declare its Inflation data in the evening.

Global Markets

  • US markets closed lower. ❌
  • Asian markets are in green. ✅
  • SGX Nifty is slightly down. ❌

Pre-Market View

SGX NIfty indicates a gap-down opening. There is definitely some room to the downside. Last day's low would act as support. If that is breached, markets can trend strongly.

Intraday Trade Setups

Retracement trade:

  • Both Nifty and Bank-Nifty both opened gap-up of 0.15% and 0.35%, respectively.
  • The initial opening candles were bearish which set the tone for the day for both the markets.
  • At 10:05 am, in both the markets, there was a red bar closing giving the opportunity to open a short position in the direction of trend.

Reversal trade:

  • After wedging, both the markets had a sharp reversal and ranged for a bit during low volume hours.
  • At 01:25 pm, nifty gave a sell signal after putting up a double top.
  • At 01: 35 pm and 02:30 pm, bank-nifty gave sell signals.

Market Breadth:

  • Nifty psubank was the biggest gainer.
  • Nifty metal was the lagger.
  • TATAMOTORS was the top gainer in Nifty 50 with 3.17% gain.
  • TATASTEEL was the top loser in Nifty 50 ending at -4.77%.
  • Nifty 50 advances: 15
  • Nifty 50 declines: 35

Trade Plan for Next Session:

  • Today both the markets were quite range-bound
  • Today, FIIs were net sellers for 336 crores while DIIs were net sellers for 676 crores.
  • If market opens gap-up, markets may be range-bound.
  • If its opens flat or gap-down, markets my again trend lower.