12th Oct ’23 - BN hides the NiftyIT fall today - PostMortem
BankNifty Analysis
Banknifty also had a perfect flat day today. Since we did not have an attempt to fall, I assume the bulls have a slight advantage over the bears. Its inability to take out the 44738 resistance was also quite worrying.
But there was something strange and heroic by BN today. NiftyIT was falling pretty sharply today on the back of results from TCS. INFY also started falling even though the results came after market hours. NiftyIT fell 1.67% today but had a total swing range of 2% today. The major reason why it was not reflecting on Nifty50 was due to BankNifty’s counter-performance along with RELIANCE & ITC.
Will try to write an article this weekend on why NiftyIT should have Futures & Options enabled and an independent expiry day. The only volatile index out there is IT and since we have a VIX collapse the option sellers are making only peanuts these days (me included). NiftyIT if enabled for FnO will have attractive premiums as it is quite expected to move 1.5 to 2% intraday.
On the 1hr chart, BN shows a sideways pattern. I wish to continue my neutral stance till the resistance of 44738 is taken out. And wish to change to bearish if we break the 44380 levels. After the market closed we got the CPI inflation data and it came at 5.02% - source. This should give a positive boost for tomorrow. Also, the US CPI came at 3.7% - source - but as it stands SPX is trading flat.
Banknifty also had a perfect flat day today. Since we did not have an attempt to fall, I assume the bulls have a slight advantage over the bears. Its inability to take out the 44738 resistance was also quite worrying.
But there was something strange and heroic by BN today. NiftyIT was falling pretty sharply today on the back of results from TCS. INFY also started falling even though the results came after market hours. NiftyIT fell 1.67% today but had a total swing range of 2% today. The major reason why it was not reflecting on Nifty50 was due to BankNifty’s counter-performance along with RELIANCE & ITC.
Will try to write an article this weekend on why NiftyIT should have Futures & Options enabled and an independent expiry day. The only volatile index out there is IT and since we have a VIX collapse the option sellers are making only peanuts these days (me included). NiftyIT if enabled for FnO will have attractive premiums as it is quite expected to move 1.5 to 2% intraday.
On the 1hr chart, BN shows a sideways pattern. I wish to continue my neutral stance till the resistance of 44738 is taken out. And wish to change to bearish if we break the 44380 levels. After the market closed we got the CPI inflation data and it came at 5.02% - source. This should give a positive boost for tomorrow. Also, the US CPI came at 3.7% - source - but as it stands SPX is trading flat.
