Fundamental News
- Crude oil futures down by more than 5%.
Global Markets
- US markets closed lower. ❌
- Asian markets are mixed.
- SGX Nifty is down slightly. ❌
Pre-Market View
SGX NIfty indicates a gap-down opening. We have negative two negative global cues. Hence, a short opportunity can be taken once market rejects upper levels after initial short-covering. Rounding tops in smaller timeframe and doji candlestick patterns are common at reversal point to the downside.
Intraday Trade Setups
Retracement Trade:
- Both Nifty and Bank-Nifty opened gap-down -0.55% and -0.75%, respectively.
- It failed to go any higher with wick all around.
- At 09:50 am, both nifty and bank-nifty created a strong solid bearish candle.
Retracement Trade/Range Breakout:
- After a strong bearish leg to the downside, markets pulled back, creating a bearish flag pattern.
- At 02:45 pm, both the markets broke the flag trendline/ support level.
Market Breadth:
- Almost all sectors closed red with nifty bank and nifty metal being the biggest losers.
- Only nifty pharma ended in positive territory.
- Cipla was the top gainer in Nifty 50 with 1.92% gain.
- Tatasteel was the top loser in Nifty 50 ending at -4.74%.
- Nifty 50 advances: 3
- Nifty 50 declines: 47
Trade Plan for Next Session:
- Today markets trended to the downside.
- Today, FIIs were net sellers for 1951 crores while DIIs were net buyers for 612 crores.
- Bank-nifty has broken and closed below important support level of 33400. Hence it could drag nifty down with it.
- If market opens flat or gap-down, the market may move to the downside.
- If market opens significant gap-up, there may be a initial sell-off and sideways market due to expiry.