PostMortem on BankNifty Today & Analysis of 23 MAY 2023 FINNIFTY
Today's price action on the 3 indices
NIFTY
,
BANKNIFTY
and
CNXFINANCE
were conflicting due to which none of them really went anywhere. NiftyIT had a down day that doused the fire in Nifty50 to break-through the resistance of 18419.
Similarly Finnifty was unable to get past 19421. From the start there was huge shorting on banknifty on CE side which may have set the tone for the day. Nifty50 started gap-up and had gone to the resistance level by 10.15, but the shorting on bank & financials limited Nifty's gains.
Banknifty also opened gap-up at 43978 and there was a move upwards, something that we can expect with how the day closed yesterday. This momentum faded out at the 44080 levels and from there BN was not going anywhere.
There was a fall of 243pts between 14.25 & close. Nothing major to complain, but we all know why the last 1hr move today does not mean anything. Yes, it was finnifty expiry day.
The big-boys knew this at the open itself, I got to know the shorting intensity after 1hr of open. A little bit of that was due to the Finnifty expiry - which we will discuss separately today.
---
15mts TF shows range bound move ahead, it did not show the shorting intensity, neither can we make out from the chart pattern so far.
The bias has not changed to bearish mode, it will only if the 43253 support is broken. Do the shorts have enough strength to bring BN down to that levels - we will get to know by tomorrow.
---
1hr is still showing a converging chart pattern, just a continuation from yesterday. There is no change in bias as of now.
---
Finnifty Expiry special
Finnifty was the weaker among the 3 indices - Nifty, BankNifty & Finnifty. That was obvious as the expiry day traders would want the market to expire near previous close as much as possible. This will give them max gains for straddles.
When Nifty50 was racing ahead, finnifty stayed quite flat. It was trading around the 19421 Support/Resistance zone but did not have any momentum to push it either way.
The last 1 hr session was different from the rest of the day, we had a drop of 0.56% ~ 108pts to ensure Finnifty expires as flat as possible (0.06% gains). Also after 14.30 the premiums of both CE and PE were almost dead which made perfect sense for a small directional move. The option sellers would not have been hurt so much.
NIFTY
,
BANKNIFTY
and
CNXFINANCE
were conflicting due to which none of them really went anywhere. NiftyIT had a down day that doused the fire in Nifty50 to break-through the resistance of 18419. Similarly Finnifty was unable to get past 19421. From the start there was huge shorting on banknifty on CE side which may have set the tone for the day. Nifty50 started gap-up and had gone to the resistance level by 10.15, but the shorting on bank & financials limited Nifty's gains.
Banknifty also opened gap-up at 43978 and there was a move upwards, something that we can expect with how the day closed yesterday. This momentum faded out at the 44080 levels and from there BN was not going anywhere.
There was a fall of 243pts between 14.25 & close. Nothing major to complain, but we all know why the last 1hr move today does not mean anything. Yes, it was finnifty expiry day.
The big-boys knew this at the open itself, I got to know the shorting intensity after 1hr of open. A little bit of that was due to the Finnifty expiry - which we will discuss separately today.
---
15mts TF shows range bound move ahead, it did not show the shorting intensity, neither can we make out from the chart pattern so far.
The bias has not changed to bearish mode, it will only if the 43253 support is broken. Do the shorts have enough strength to bring BN down to that levels - we will get to know by tomorrow.
---
1hr is still showing a converging chart pattern, just a continuation from yesterday. There is no change in bias as of now.
---
Finnifty Expiry special
Finnifty was the weaker among the 3 indices - Nifty, BankNifty & Finnifty. That was obvious as the expiry day traders would want the market to expire near previous close as much as possible. This will give them max gains for straddles.
When Nifty50 was racing ahead, finnifty stayed quite flat. It was trading around the 19421 Support/Resistance zone but did not have any momentum to push it either way.
The last 1 hr session was different from the rest of the day, we had a drop of 0.56% ~ 108pts to ensure Finnifty expires as flat as possible (0.06% gains). Also after 14.30 the premiums of both CE and PE were almost dead which made perfect sense for a small directional move. The option sellers would not have been hurt so much.
