Nifty and Bank-NIfty Index Analysis for 24-03-2021

Nifty and Bank-nifty index analysis report for 24-03-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 24-03-2021

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.