Fundamental News
- US markets react to Biden proposing to increase capital gains tax.
Global Markets
- US markets fell.
- Asian markets are mixed.
- SGX Nifty is almost flat to slight negative.
Pre-Market View
SGX NIfty indicates almost flat opening. If there is a strong opening drive that takes the market above prior day's high, the markets can again trend higher.
Intraday Trade Setups
Reversal Trade:
- Both Nifty and Bank-Nifty opened -0.45% and -0.70% respectively.
- There was initial choppy activity with both bulls and bears being aggressive.
- After accumulating at the day's low, bears failed to break support and price rose above the small range bars.
- At 09:55 am, both nifty and bank-nifty created a solid green bar.
Pullback Trade:
- After trending up, both markets entered a bull channel and pulled back to 20 ema.
- At 11:00 am, both of them created a solid signal bar.
Retracement Trade:
- Both the markets pulled back in the second half.
- It was fairly expected for the market to again trend up. But at 01:35 pm, the surprise bear bar changed the trend.
- At 02:05 pm, there was a solid red bar which close below the retracement trendline.
Market Breadth:
- Nifty media was the biggest gainer.
- Nifty fmcg was the biggest lagger.
- NTPC was the top gainer in Nifty 50 with 3.94% gain.
- Britannia was the top loser in Nifty 50 ending at -2.67%.
- Nifty 50 advances: 18
- Nifty 50 declines: 32
Trade Plan for Next Session:
- Today both the markets trended both upside and downside and remained almost rangebound.
- Today, FIIs were net sellers for 1360 crores while DIIs were net buyers for 1695 crores.
- Markets remained strong in the first half before pulling back in the second.
- If market opens flat or gap-up, we can again trend upward. However there is a short term resistance at today's high.
- If market opens gap-down, and today's low is breached, there is some downside space.