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.