20SEP2021

Previous Session:
🔴 #Nifty fell 200 points from #Intraday high with 180% of 25 SMA avg volume. This indicates supply near the 17800 levels.
🔴 #BankNifty rose to ATH of 38226 and fell nearly 750 points. But it pared the losses by sharp recovery towards the end.
🟢 FII were net buyers with 3600+ cr of directional buying in cash & index futures. This would try to keep the morale high.

Global markets:
🟠 US markets closed lower on Friday session. US futures are down by another 0.7% in early morning session.
🟠 European markets closed lower on Friday. Futures trading another 0.5% lower in early morning today.
🔴 Dollar index had a spurt and closed near 93.24 putting pressure on precious metals. Silver down by another 2.33%
🔴 SGX Nifty down significantly indicating a lower opening in Indian benchmark indices. Asian markets trading lower.

Technicals
🔴 Momentum indicators indicate overbought. Nifty D(85), W(79.22), M(79.10). No signs of exhaustion in price charts.
🔴 Historically such high RSI levels > 80 in Weekly/Monthly is followed by a decent correction in the equity markets.
🟢 #Nifty notices OI reduction which indicates profit booking and in daily it has formed a SoD & InvertedHammer candle.
🟡 Time to exercise caution in this euphoria. Buy on dips has worked well for the bulls. But better stay cautious.

Futures Level:
#Nifty Fut 17378/17436/17482/17512 - 17665/17694/17717/17759
RDX Trend & Momentum Score - 75M(3*)/1D(7*)/1W(7*) #Cautious

#BankNifty 37065/37242/36367/36446 - 37946/38045/38266/38415
RDX Trend & Momentum Score - 75M(6*)/1D(7*)/1W(6*) #Bullish

#TradePlan #PreOpenUpdate #IndexFutLevels #20SEP2021