PostMortem on BankNifty Today & Analysis of 23 JUN 2023

Even in spite of the recent greenish momentum, we were all looking for a bearish breakthrough. I cannot say with 100% confidence that we are on the verge for a timely correction - but the markets are quite indicating that way.
Banknifty is again scoring over Nifty50 by staying more stable and swinging lesser. Today's episode may be linked to ADANIENT, but over the past few weeks - I think Nifty50's volatility is higher than Banknifty. Mainly because the options premium & the daily price swings per strike depends on the uncertainty of the underlying.
And if you are an option seller, nifty's options gave more bang for the buck compared to banknifty.


Banknifty opened slightly gap down, filled the gap immediately and then made a downswing. The LOD was 43519 at 09.35 which was recovered pretty quickly. By 10.25 BN turned positive and maintained ground.
The session from 12.45 to close made some price action which showed a sentimental level weakness - but nothing serious. In fact Nifty50 hit its LOD during the closing minutes, but not banknifty.


Nifty50 1hr chart shows the trade that was carried out today was below the resistance zone for 18762. Yesterday's trade was concluded right at this SR level and then today's breakdown helped the momentum to play its part.
Yesterday also we discussed the price action forming a 2 legged downward move


Banknifty's 1hr chart on the other hand is showing a converging price, the top keeps falling and the bottom stays steady. A falling wedge is a bullish indicator - but at present I dont see signs of outright bullishness.


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