21st Nov ’23 BankNifty PostMortem - Stance changed to Neutral !
BankNifty Analysis
BankNifty was perfectly neutral in trade today. I had a bearish call from yesterday but seeing the moves today it makes sense to switch back to the neutral mode. One reason why its not picking up direction would be attributed to the unavailability of information on the recent announcement by RBI. When the risk weights of consumer loans and credit cards were increased by 25% - maybe the market is still gauging the impact of this news.
5mts chart link - click here
Few major banks had reported the decision would be similar to a 55bps to 60bps rate in interest. Note, the interest rates are not getting raised, the sucking of liquidity will give such a perception. According to me, a 55bps rate hike kind of feeling is not something that should be taken lightly. Meanwhile as a trader, I would prefer to wait for the markets to decide on where it goes next.
1hr chart link - click here
On the 1hr TF, BankNifty has fallen from the recent swing high of 44420, it had amassed gains of 2321pts ~ 5.51% between 26th Oct to 16th Nov (A short span), so it looks like the bulls have not given up yet, and the bears are still not able to make inroads. The support of 43566 has proven quite strong in the last 3 sessions and the next resistance of 44063 is quite far away. Since we are in an indecision zone, I would like to revise my stance from bearish to neutral and go short only if the 43404 support is also getting knocked out.
BankNifty was perfectly neutral in trade today. I had a bearish call from yesterday but seeing the moves today it makes sense to switch back to the neutral mode. One reason why its not picking up direction would be attributed to the unavailability of information on the recent announcement by RBI. When the risk weights of consumer loans and credit cards were increased by 25% - maybe the market is still gauging the impact of this news.
5mts chart link - click here
Few major banks had reported the decision would be similar to a 55bps to 60bps rate in interest. Note, the interest rates are not getting raised, the sucking of liquidity will give such a perception. According to me, a 55bps rate hike kind of feeling is not something that should be taken lightly. Meanwhile as a trader, I would prefer to wait for the markets to decide on where it goes next.
1hr chart link - click here
On the 1hr TF, BankNifty has fallen from the recent swing high of 44420, it had amassed gains of 2321pts ~ 5.51% between 26th Oct to 16th Nov (A short span), so it looks like the bulls have not given up yet, and the bears are still not able to make inroads. The support of 43566 has proven quite strong in the last 3 sessions and the next resistance of 44063 is quite far away. Since we are in an indecision zone, I would like to revise my stance from bearish to neutral and go short only if the 43404 support is also getting knocked out.
