13 Jul '23 Post Mortem on BankNifty + Weekly Analysis
BankNifty Weekly Analysis
Banknifty on the other hand is down 1.31% ~ 592pts between the last expiry & today. This was obvious as banknifty had shown a bearish trend ever since hitting the ATH on 4th July.
Today for a brief period banknifty went above the bearish trend line but reverted to mean and closed within. It was when Nifty took out the ATH that BN reached the 45000 levels today.
I now have a bullish call for nifty and a bearish call for banknifty, unfortunately only one of them will work out!
---
BankNifty Daily Analysis
The initial upswing and the downswing later in the day was quite similar to the one in Nifty50. If banknifty decided to stay above the trend line the bearish bias would have ended & it would have given more confidence for further peaks.
While analyzing the options flow, I noticed huge volumes of PE credit spreads getting written i.e between 12.15 to 12.45 period. The encircled portion from the charts.
Here again it was well before the fall started, so there is every likely hood those bullish spreads would have been covered. If not there is a high likely hood that it comes into effect tomorrow & banknifty might break through.
Banknifty on the other hand is down 1.31% ~ 592pts between the last expiry & today. This was obvious as banknifty had shown a bearish trend ever since hitting the ATH on 4th July.
Today for a brief period banknifty went above the bearish trend line but reverted to mean and closed within. It was when Nifty took out the ATH that BN reached the 45000 levels today.
I now have a bullish call for nifty and a bearish call for banknifty, unfortunately only one of them will work out!
---
BankNifty Daily Analysis
The initial upswing and the downswing later in the day was quite similar to the one in Nifty50. If banknifty decided to stay above the trend line the bearish bias would have ended & it would have given more confidence for further peaks.
While analyzing the options flow, I noticed huge volumes of PE credit spreads getting written i.e between 12.15 to 12.45 period. The encircled portion from the charts.
Here again it was well before the fall started, so there is every likely hood those bullish spreads would have been covered. If not there is a high likely hood that it comes into effect tomorrow & banknifty might break through.
