Nifty and Bank-NIfty Index Analysis for 20-05-2021

Nifty and Bank-nifty index analysis report for 20-05-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 20-05-2021

Fundamental News

  • Nothing significant.

Global Markets

  • US markets gapped down but recovered intraday.
  • Asian markets are mixed.
  • SGX Nifty is slightly up.

Pre-Market View

SGX NIfty indicates almost flat opening. The markets are opening in congestion zone. Therefore wait for clear trend.

Intraday Trade Setups

Triangle breakdown:

  • Both Nifty and Bank-Nifty both opened gap-up of 0.2% and 0.25%, respectively.
  • There was confusion in the initial bars followed by a large sell-off.
  • Both the market retraced and found resistance at previous levels.
  • At 10:20 am, there was sell short signal in both markets.

Zone Rejection:

  • After first two hours of volatile movement, since support and resistances were so close, the market ranged without any volume coming to breakout of the range.
  • At 11:50 am in nifty, price rejected the upper band of the range.
  • At 12:50 pm in nifty-bank, price broke out the triangle and retraced a bit to find rejection at the bottom level of triangle.
  • At 02:05 pm, nifty-bank again found rejection at day's low from previous low.

Range-breakout:

  • Nifty broke out its intraday range in the second half. The price formed a wedge in 1 min chart and broke below it.
  • At 02:30 pm, nifty gave a sell short signal.

Market Breadth:

  • Nifty PSUBANK was the only gainer.
  • Almost all other sectors ended in red with Nifty metal being the lagger.
  • CIPLA was the top gainer in Nifty 50 with 2.38% gain.
  • TATASTEEL was the top loser in Nifty 50 ending at -5.1%.
  • Nifty 50 advances: 14
  • Nifty 50 declines: 36

Trade Plan for Next Session:

  • Today both the markets were trading range days with trending swings in between.
  • Today, FIIs were net buyers for 71 crores while DIIs were net sellers for 876 crores.
  • Nifty has strongly ralied to resistance.
  • If market opens flat, opening drive may decide the trend.
  • If its opens gap-down, markets may trend lower.