Nifty and Bank-NIfty Index Analysis for 22-04-2021

Nifty and Bank-nifty index analysis report for 22-04-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 22-04-2021

Fundamental News

  • Markets may react to PM speech regarding coronavirus.

Global Markets

  • US markets closed higher. ✅
  • Asian markets are also higher. ✅
  • SGX Nifty is down by more than 50 points.

Pre-Market View

SGX NIfty indicates a gap-down opening. Although we have two green ticks from global markets, lately our markets have been impervious to that. We are near major support. Therefore price-action would be key. A short-covering rally may happen before taking resistance at previous day's price congestion.

Intraday Trade Setups

Range-breakout:

  • Both Nifty and Bank-Nifty opened -0.4% and -1.1% gap-down.
  • Nifty showed a strong reversal after a initial large red bar.
  • After a series of inside bars/pause bars, nifty finally broke out above day' high.
  • At 09:40 am, nifty broke out with a solid green bar.

Pullback Trade:

  • At 09:40 am, bank-nifty had a similar solid green bar after a pullback.
  • After that, both markets had a leg-up and then a two legged pullback.
  • The green candles were solid, large and closed near their highs. Hence although market was pulling back at prior day's resistance, there was a good case for bulls.
  • At 11:10 am, both nifty and bank-nifty had a solid green bar .

Market Breadth:

  • Nifty bank was the biggest gainer.
  • Nifty fmcg was the biggest lagger.
  • Wipro was the top gainer in Nifty 50 with 3.49% gain.
  • ShreeCem was the top loser in Nifty 50 ending at -2.77%.
  • Nifty 50 advances: 27
  • Nifty 50 declines: 23

Trade Plan for Next Session:

  • Today both the markets trended upside.
  • Today, FIIs were net sellers for 909 crores while DIIs were net buyers for 849 crores.
  • This rally may prove to be the turning point.
  • If market opens flat or gap-up, we can again trend upward.
  • If market opens gap-down, expect a sideways market.