Nifty and Bank-NIfty Index Analysis for 14-05-2021

Nifty and Bank-nifty index analysis report for 14-05-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 14-05-2021

Fundamental News

  • Inflation data creates volatility in US markets.

Global Markets

  • US markets closed higher with some volatility. ✅
  • Asian markets are in green. ✅
  • SGX Nifty is slightly down. ❌

Pre-Market View

SGX NIfty indicates almost flat opening. The markets are opening in congestion zone, therefore any strong closing bars might be false signal bar as it often happens in range-bound market.

Intraday Trade Setups

Triangle breakdown:

  • Both Nifty and Bank-Nifty both opened gap-up of 0.3% and 0.2%, respectively.
  • At 11:10 am, nifty broke below a falling-wedge/ triangle pattern.

Range-breakout:

  • At 11:35 am, bank-nifty broke below its intraday low with an extended bar.

Reversal trade:

  • At 12:10 pm, nifty after giving a strong breakout bar to the downside immediately rose up, creating a bullish hammer in 15 min timeframe.
  • At 12:35 pm, in bank-nifty, the previous low of the day now turned support, price bounced from it breaking the high of the previous red bar.

Market Breadth:

  • Nifty FMCG was the only gainer.
  • Almost all other sectors ended in red with Nifty AUTO being the lagger.
  • ASIANPAINT was the top gainer in Nifty 50 with 8.44% gain.
  • TATASTEEL was the top loser in Nifty 50 ending at -4.43%.
  • Nifty 50 advances: 15
  • Nifty 50 declines: 34

Trade Plan for Next Session:

  • Today both the markets were trading range days with trending swings in between.
  • Today, FIIs were net sellers for 2607 crores while DIIs were net sellers for 613 crores.
  • Markets are in down-trending channel.
  • If market opens gap-up, markets may be range-bound.
  • If its opens flat or gap-down, markets my again trend lower.