BankNifty Analysis If you read the postmortem report yesterday, you might have seen how the W pattern formed yesterday and BankNifty respecting the ascending trend line turned out. BankNifty had a different start today vs Nifty because we opened 0.95% gap-up and then rallied another 0.8% to hit the all time highs.
The 2nd rally was equally intense as the first. And once we hit the ATH - BN turned flat and had a sideways trend till close. Remember we discussed how gap-up and gap-downs are the major weapon used by the big-boys to scare the s**t out of the option sellers? US markets rarely does the gap-ups or gap-downs, I mean the index. Whereas the majority of the gains/loss in our markets are done via gaps. FED’s rate cuts promise in 2024 looks like more of a political play than an economic one. A rallying market and portfolios in green sounds pretty good for the incumbent leaders. Imagine trying to get re-elected when there is economic depression/recession?
The stance on BankNifty has been revised to bullish. I have no targets in mind as we are at the ATH. The first support to look at will be 47588. Meanwhile, the charts look perfectly like in the textbook.