- 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.
- US markets closed higher. on Friday. ✅
- Asian markets are mixed.
- SGX Nifty is showing a flat opening.
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.
- 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
- 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.
- Nifty had retraced a bit after a strong selling impulse.
- At 10:55 am, nifty broke below its retracement trendline.
- 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.