Nifty and Bank-NIfty Index Analysis for 26-03-2021

Nifty and Bank-nifty index analysis report for 26-03-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 26-03-2021

Fundamental News

  • Nothing significant.

Global Markets

  • US markets closed green after opening gap-down. ✅
  • Asian markets are mixed.
  • SGX Nifty is up by 100 points. ✅

Pre-Market View

SGX NIfty indicates a gap-up opening. There should be a initial sell-off before stabilizing as global cues are good. After such a volatile expiry, the market should contract and establish a range.

Intraday Trade Setups

Pole-Flag pattern:

  • Both Nifty and Bank-Nifty opened gap-up.
  • As expected, initial sell-off came before stabilizing at previous level.
  • Bank-nifty created a triangle pattern, which basically is a flag pattern when market gaps up.
  • At 11:35 am, bank-nifty broke out of the flag.

Wedge Breakout:

  • Nifty had create a wedge pattern as it was trending upside.
  • At 01:35 pm, nifty broke below the wedge.

Market Breadth:

  • All major sectors ended in green with nifty metal and nifty FMCG being the biggest gainers.
  • Nifty pharma and nifty IT lagged behind with their gains.
  • Tatasteel was the top gainer in Nifty 50 with 5.82% gain.
  • UPL was the top loser in Nifty 50 ending at -1.39%.
  • Nifty 50 advances: 44
  • Nifty 50 declines: 6

Trade Plan for Next Session:

  • Today markets were completely range-bound.
  • Today, FIIs were net sellers for 50 crores while DIIs were net buyers for 1703 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 gap-up, the market may take support at today's intraday high and move higher.