Nifty and Bank-NIfty Index Analysis for 15-03-2021

Nifty and Bank-nifty index analysis report for 15-03-2021

ยท 2 min read
Nifty and Bank-NIfty Index Analysis for 15-03-2021

Fundamental News

  • US Fed meet on Tuesday and Wednesday, ECB and Bank of England on Thursday, Bank of Japan on Friday to decided on central bank policy.
  • US 10 year bond yield at 1.62% after hitting 1.64%.
  • US Dollar is also appreciating, Crude is higher, not good for emerging markets.

Global Markets

  • US markets closed higher. on Friday. โœ…
  • Asian markets are mixed.
  • SGX Nifty is showing a flat opening.

Pre-Market View

SGX Nifty indicates a flat opening. There is not much positive global cues. Hence as discussed previously, if previous session's low is broken, a short trade can be taken. However, if market bounces, it can again fall back as there is a strong bear leg in the immediate left of it.

Market Breadth:

  • Among sectors, metal, IT and PSU bank indices ended in the green.
  • Selling was witnessed in the auto, infra and pharma sectors.
  • JSW steel was the top gainer in Nifty 50 with gain of 2.44%.
  • Divislab was the top loser in Nifty 50 ending in -2.9%.

Intraday Trade Setups

Range-Breakout:

  • Both Nifty and Bank-Nifty both of them opened flat and created a very strong bearish candle in the first opening 5 min.
  • At 09:20 am, the low of the first candle was breached as well as previous low, creating a short opportunity in both nifty and bank-nifty.
  • At 10:50 am, bank-nifty yet again broke out of a small range it had formed at its lows.

Retracement Trade:

  • Nifty had retraced a bit after a strong selling impulse.
  • At 10:55 am, nifty broke below its retracement trendline.

Wedge-Breakout:

  • In the later half of the day, after creating 2-3 impulse moves to the downside, the selling pressure had slowed down creating a wedge pattern in both nifty and bank-nifty.
  • At 01:35 pm, both nifty and bank-nifty broke out of their wedges.

Trade Plan for Next Session:

  • Today markets were again rendy to the downside before bouncing back.
  • Today, FIIs were net sellers for 1101 crores while DIIs were net sellers for 749 crores.
  • If markets open gap-down or flat, markets may trend to the downside to test today's low.
  • If markets open gap-up, they may may remain range-bound with so many levels so close.