Nifty and Bank-NIfty Index Analysis for 23-04-2021

Nifty and Bank-nifty index analysis report for 23-04-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 23-04-2021

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.