09 Feb ’24 — BankNifty defends the 45399 level, boosting bulls

NSE:BANKNIFTY   Nifty Bank Index
BankNifty Analysis - Stance Neutral ➡️
BankNifty defends the 45399 level with so much ease today. After witnessing the rout yesterday, we seriously thought BN would take longer than usual to recover the lost ground. Do you remember the discussion we had about the 2 strong RED candles before breaking the 45399 levels yesterday? Today’s counter move made them look insignificant.

4mts chart
The intraday low was hit in the first candle itself and from that point, we had an intraday rally of 854pts ~ 1.91%. The closing was with so much strength and rightly so as once we broke through the 45399 resistance - BN bulls got so much hope & enthusiasm. Notice the encircled region and how we spent the time around the SR level before breaking out. The green candles were getting stronger with every iteration.

63mts chart
The last candle of today forms perfectly above the 45399 confirming the break. This nullifies yesterday’s fall and we are back into the neutral territory. For Monday we need to look for non-directional trades again and would only go short if the support breaks. To go LONG we have quite a distance to cover as just beating 46800 would not suffice.

Algo Trading
Our BankNifty algo trades ended today with a gain of 217pts. If you look at the chart below - you can see how difficult it was for the system to handle the reversals today.


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