Nifty and Bank-NIfty Index Analysis for 22-03-2021

Nifty and Bank-nifty index analysis report for 22-03-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 22-03-2021

Fundamental News

  • Nothing significant.

Global Markets

  • US markets are mixed.
  • Asian markets are also non-trendy.
  • SGX Nifty is almost flat.

Pre-Market View

SGX NIfty indicates a flat opening. We have no strong cues from the global market. In fact, in daily chart, the market is expected to be non-trendy as we are in a downtrend in higher timeframe while in shorter time frame the market has rallied up. It would be wiser to stick to higher timeframe trend if any such setup arises.

Intraday Trade Setups

Retracement Trade:

  • Both Nifty and Bank-Nifty opened flat. There was strong bearish red candle on the opening 5 min candle. There was no follow-through and the intraday high was tested.
  • When you factor in yesterday's market high, price had dropped followed by the recent retracement. It also aligned with the higher timeframe trend making it a good setup.
  • At 09:50 pm, bank-nifty created a double wick at intraday high.
  • At 10:10 pm, nifty created a lower high after being rejected at day's high.
  • Since nifty was stronger, the lower high gave a confirmation signal. However, bank-nifty was the ideal trade.

Market Breadth:

  • Nifty IT , FMCG, Pharma were gainers.
  • Nifty bank, private banks, financial services ended in red.
  • Adani Ports was the top gainer in Nifty 50 with 5.2% gain.
  • IndusInd Bank was the top loser in Nifty 50 ending at -4.2%.
  • Nifty 50 advances: 30
  • Nifty 50 declines: 20

Trade Plan for Next Session:

  • Today markets were completely volatile and range-bound. Nifty was stronger than bank-nifty.
  • Today, FIIs were net sellers for 786 crores while DIIs were net buyers for 542 crores.
  • Nifty is keeping bank-nifty afloat. Bank-nifty is at a critical support and judging by price-action it looks weak.
  • If market opens flat or gap-down, the market may move to the downside.
  • If market opens significant gap-up, the market may become sideways.