Nifty and Bank-NIfty Index Analysis for 30-03-2021

Nifty and Bank-nifty index analysis report for 30-03-2021

· 2 min read
Nifty and Bank-NIfty Index Analysis for 30-03-2021

Fundamental News

  • US 10 year bond yield above 1.7%.

Global Markets

  • US markets are higher. ✅
  • Asian markets are higher. ✅
  • SGX Nifty is up by almost 100 points. ✅

Pre-Market View

SGX NIfty indicates a huge gap-up opening. We have three green ticks from global cues. Monday was a holiday for us. US markets closed higher on Friday and sustained it on Monday. There markets may move higher. However, with such a big gap on opening, initial sell off my come before taking support at previous levels.

Intraday Trade Setups

Reversal Trade:

  • Both Nifty and Bank-Nifty opened gap-up of 0.7% .
  • The gap sustained in both of them and there was good rally to the upside in the first half.
  • After that a pullback was expected in both. Nifty bank was especially weak in terms of price-action.
  • At 11:50 am, nifty bank broke a shorter timeframe trendline. There was a good follow-through in nifty bank and it went on to test the day's low.

Retracement trade:

  • Nifty-bank after a strong bearish leg, retraced a bit creating another shorting opportunity.
  • At 12:55 pm, nifty bank broke below a shorter timeframe trendline.

Pullback trade:

  • Nifty was the stronger index. It retraced before bouncing back up from previous level.
  • Then it put on a lower high, contracting a bit.
  • At 01:10 pm, nifty formed a solid green bar breaking a shorter timeframe trendline.

Market Breadth:

  • All major sectors ended in green with nifty metal and nifty FMCG being the biggest gainers.
  • Nifty realty was the only sector in red.
  • UPL was the top gainer in Nifty 50 with 7.59% gain.
  • Hindalco was the top loser in Nifty 50 ending at -0.32%.
  • Nifty 50 advances: 46
  • Nifty 50 declines: 4

Trade Plan for Next Session:

  • Today nifty was trendy where as nifty bank was rangebound.
  • Today, FIIs were net buyers for 769 crores while DIIs were net buyers for 2181 crores.
  • If market opens flat or gap-up, markets may trade with positive bias.
  • If market opens gap-down, the market may take resistance at today's high and be range-bound.