Nifty and Bank-NIfty Index Analysis for 25-03-2021

Nifty and Bank-nifty index analysis report for 25-03-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 25-03-2021

Fundamental News

  • US tech stocks are being deemed overvalued which is causing selloff in US market.

Global Markets

  • US markets closed lower. ❌
  • Asian markets are mixed.
  • SGX Nifty is down. ❌

Pre-Market View

SGX NIfty indicates another negative scenario. We have two crosses from global cues. As discussed earlier, as the market is opening almost flat to gap-down, market has higher chances of trending down.

Intraday Trade Setups

Wedge Breakout:

  • Both Nifty and Bank-Nifty opened almost flat. There was a huge red candle on the opening which set the bearish tone for the day.
  • After that market consolidated for some time.
  • Nifty created a wedge pattern with lowers highs and lower lows.
  • At 10:50 am, nifty broke out of this range.

Range Breakout:

  • Bank-nifty was consolidating in a range.
  • At 10:50 am, it broke out of that range.

Zone Rejection:

  • At 11:40 am, both nifty and bank-nifty after breaking out their respective consolidation, went on to retest previous support level now turned resistance and got rejected with the formation of dojis , wicks and rounding top.

Market Breadth:

  • Almost all sectors closed red with nifty auto and nifty media being the biggest losers.
  • Only nifty metal ended in positive territory.
  • Tatasteel was the top gainer in Nifty 50 with 2.87% gain.
  • IOC was the top loser in Nifty 50 ending at -4.02%.
  • Nifty 50 advances: 5
  • Nifty 50 declines: 45

Trade Plan for Next Session:

  • Today again markets trended to the downside before recovering and then again falling back.
  • Today, FIIs were net sellers for 3383 crores while DIIs were net buyers for 2267 crores.
  • Today's volatility in the second half can be attributed to index-management on monthly expiry.
  • 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.
  • The trend is the downside, hence short setups should be mostly considered.