Nifty and Bank-NIfty Index Analysis for 19-04-2021

Nifty and Bank-nifty index analysis report for 19-04-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 19-04-2021

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.