Trade setup for Indian equity markets for May 5, 2021
Nifty declined over 200 points from day’s high to close near 14500. The 50-stock index has been trying hard to defend its 100-day moving average placed at 14486.Nifty Bank extended its loss to 4 days in a row after falling more than 700 points in intraday trade. It has been facing resistance at the 100-day moving average placed at 33063.Nifty Small & Midcap indices fell over 2 percent each from their respective day’s high with the smallcap gauge forming a bearish dark cloud cover pattern on its daily chart.Nifty PSU Bank broke out above the declining trend line from the highest point of February this year and also closed above the 100-day moving average. It fell over 3 percent from day’s high but managed to gain over 3 percent for the day. Nifty Pharma declined the most since 18 March 2021 and made a bearish evening star pattern on its daily chart.Among other sector highlights – Nifty Metal declined over 2.5 percent from day’s high while Nifty Media, Financial Services and Realty indices fell over 2 percent from their day’s high.Foreign investors sold Indian equities worth Rs 1772 crore in the cash segment on a provisional basis and bought Rs 2694 crore in the futures & options market. They decreased the net long in index futures to 52 percent as compared with 53 percent on the previous day. That’s below the May average of 53 percent. Domestic institutions bought Indian equities worth Rs 987 crore in the cash market.