PostMortem on BankNifty Today & Analysis of 30 NOV 2022
Feeling pretty tired after watching today's price action. For the last 3 days i have been looking out on the bearish side of bank nifty. The day started gap up and then a rally of 127pts in the first 5mts candle.
This was inline with the recent swing high level - took an immediate resistance and then started falling. For once i thought my short sell view on bank nifty is finally working out.
The fall that started at 09.20 went on till 11.25 almost a dip of 365pts. This fall made more bearishness as the nifty50 was still steaming ahead. Then we had a sideways move till 12.50.
What happened after that is like a fairy tale. The first leg of upmove from 12.55 to 13.10 then the 2nd leg at 13.45 all the way to the close.
From 13.45 bank nifty rallied 401pts with 2 strong green candles at 15.00 and 15.10. This not just took out the swing high but showed immense bullish momentum.
The last 30mts move could be either an expiry special positioning or may be a rebalancing move. I am not really inclined to reverse by bearish bias with just this 1 occurrence. Lets wait for the price action on Friday for accurate direction.
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Of the bank nifty components
HDFC BK started the day positively then the the entire day was near the flatline if not for the last 30mts spike
ICICI Bank had fell into negative territory but the last 30mts ensured the day's high is taken out
SBI did not take part in the last 30mts rally and was trading in the negative region all through the day.
AXIS had turned positive by 13.40 and then got extra momentum in the last 30mts
Kotak was trading with a negative bias, started showing recovery signs by 11.00. But the last 30mts had the best impact for Kotak
IndusInd like SBI was trading in red, and the last 30mts rally did not boost the price.
Notice the volume bars of all these 6 banks. This was the reason there was a surge in prices. This could be either an index or mutual fund rebalancing exercise. Looking at just this data will not provide conclusive evidence if its fresh buy.
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15mts TF has taken out the swing high showing bullish signals. But it just came in 1 candle - which is kind of surprising
1hr TF shows bullishness
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