05 Feb ’24 — BankNifty's total day's move done in first 5mts
BankNifty Analysis - Stance Neutral ➡️
BankNifty was more flattish today even though the chart pattern shows a bearish tinge. We lost 145pts ~ 0.32% today, but if a trader got into a straddle position after the first candle - it would have ended quite perfectly today. This means that the net loss for the banknifty was decided in the opening 4 or 5 minutes and the remainder of the day was just spent fooling around.
4mts chart
If we extrapolate it from the previous day’s pattern it looks bearish. But if we extend it to the last few days - it's all neutral. As long as BN is between 45399 and 47465 - we are in for a perfect range-bound trade. The moment one of them gives away - we can see the pressure releasing and a strong trend developing. We need to note that Nifty was unable to break from a range-based trade in the last 47 days, as the count of the days goes up - the higher will be the breakout/breakdown momentum.
63mts chart
Most importantly BankNifty will have to be its torch bearer. Looking at the charts right now - BN is pretty unsure which way to swing. There were some bright RED candles in the last 3 week’s action and possibly things are facing south. Whereas Nifty is looking northbound. As long as this tug-of-war stays, none of them breaks free. The best option for the bears is to take out the support of 45399 via gap-down tomorrow and then hope the shorts will mount. We wish to maintain our neutral stance till something materializes.
Algo Trading
Our BankNifty algo trades ended today with a gain of Rs5500
BankNifty was more flattish today even though the chart pattern shows a bearish tinge. We lost 145pts ~ 0.32% today, but if a trader got into a straddle position after the first candle - it would have ended quite perfectly today. This means that the net loss for the banknifty was decided in the opening 4 or 5 minutes and the remainder of the day was just spent fooling around.
4mts chart
If we extrapolate it from the previous day’s pattern it looks bearish. But if we extend it to the last few days - it's all neutral. As long as BN is between 45399 and 47465 - we are in for a perfect range-bound trade. The moment one of them gives away - we can see the pressure releasing and a strong trend developing. We need to note that Nifty was unable to break from a range-based trade in the last 47 days, as the count of the days goes up - the higher will be the breakout/breakdown momentum.
63mts chart
Most importantly BankNifty will have to be its torch bearer. Looking at the charts right now - BN is pretty unsure which way to swing. There were some bright RED candles in the last 3 week’s action and possibly things are facing south. Whereas Nifty is looking northbound. As long as this tug-of-war stays, none of them breaks free. The best option for the bears is to take out the support of 45399 via gap-down tomorrow and then hope the shorts will mount. We wish to maintain our neutral stance till something materializes.
Algo Trading
Our BankNifty algo trades ended today with a gain of Rs5500
