Fundamental News
- Markets may react to increasing corona virus cases in India.
Global Markets
- US markets closed again at all time high. ✅
- Asian markets are also higher. ✅
- SGX Nifty is down by more than 200 points.
Pre-Market View
SGX NIfty indicates a huge gap-down opening. Although, there are two positive cues from global markets, our markets do not seem to be respecting them. Look out for a steep short covering rally after such a huge gap-down.
Intraday Trade Setups
Reversal Trade:
- Both Nifty and Bank-Nifty opened -1.8% and -2.8% gap-down.
- There was two legs of momentum to the downside.
- Nifty was stronger than nifty bank as was evident from price-action.
- At 09:55 am, nifty created a solid green candle. In such huge, gap-down scenarios, markets may came a v-shaped recovery from new lows.
- At 12:40 pm, bank-nifty broke above the trendline.
Pole-flag pattern:
- Nifty rallied up from the lows to the day's high and pulled back creating a pole-flag pattern.
- At 12:00 pm, nifty broke above the trendline.
Market Breadth:
- Nifty pharma was the only sector in slight green.
- Nifty psu bank and nifty auto were the laggers.
- Wipro was the top gainer in Nifty 50 with 2.28% gain.
- JSWSteel was the top loser in Nifty 50 ending at -4.83%.
- Nifty 50 advances: 5
- Nifty 50 declines: 45
Trade Plan for Next Session:
- Today both the markets were range-bound with good swings both sides.
- Today, FIIs were net sellers for 1633 crores while DIIs were net buyers for 2355 crores.
- If market opens flat or gap-up, have a long bias.
- If market opens gap-down, have a sideways to short bias.