PostMortem on BankNifty Today & Analysis of 24 APR 2023
By 09.15 around 90% of traders would have guessed how
BANKNIFTY
is going to trade today. Thats because
ICICIBANK
had an excellent quarterly results to boast for.
The predictability of banknifty is, one leading bank is enough to pull up the sentiment of others. Same on the downside as well.
Opening was gap up at 42469, and it took a while before it started climbing to the resistance zone. Till 12.40 there was no directional bias - banknifty was maintaining the opening gap and not yielding ground.
There was no attempt to close the gap too, meanwhile
NIFTY
went to slightly negative zone. Just compare the price action of banknifty vs nifty50, banks did not show any weakness at all whereas nifty50 was unable to maintain the gap.
---
From 12.40 banknifty took-off breaking the resistance of 42576 very easily, It just required a small upmove of 287pts to get rid of this important resistance.
There was also a test of support at 14.35 to 15.05 - but the momentum was too strong and bank nifty held its ground.
I am starting to wonder how are these banks able to provide this stellar results? How are Indian firms able to outperform the global peers so efficiently and effortlessly? Unbelievable.
The global banking fear of Silvergate, SVB, Credit Suisse has not lifted a finger in India. Not even a glitch!
---
15mts TF get a new bullish tone after today's move and the resistance getting broker. This temporarily gives the bull the edge from the rangebound trade we had till 21st Apr.
---
1hr chart is scaling new heights, with the next resistance seen at 43012. You would have noticed banknifty usually uses gaps to move the distance from 2022 onwards. Only rarely we see banknifty making huge moves during the day.
This has cooled off the options premium again, I shorted few PUT options today very well knowing that they are already near the fair value. I was not surprised to end the day in losses as there was no further decay left in the options I traded. Literally pointing that option-selling is getting very unattractive at low volatility levels.
BANKNIFTY
is going to trade today. Thats because
ICICIBANK
had an excellent quarterly results to boast for. The predictability of banknifty is, one leading bank is enough to pull up the sentiment of others. Same on the downside as well.
Opening was gap up at 42469, and it took a while before it started climbing to the resistance zone. Till 12.40 there was no directional bias - banknifty was maintaining the opening gap and not yielding ground.
There was no attempt to close the gap too, meanwhile
NIFTY
went to slightly negative zone. Just compare the price action of banknifty vs nifty50, banks did not show any weakness at all whereas nifty50 was unable to maintain the gap. ---
From 12.40 banknifty took-off breaking the resistance of 42576 very easily, It just required a small upmove of 287pts to get rid of this important resistance.
There was also a test of support at 14.35 to 15.05 - but the momentum was too strong and bank nifty held its ground.
I am starting to wonder how are these banks able to provide this stellar results? How are Indian firms able to outperform the global peers so efficiently and effortlessly? Unbelievable.
The global banking fear of Silvergate, SVB, Credit Suisse has not lifted a finger in India. Not even a glitch!
---
15mts TF get a new bullish tone after today's move and the resistance getting broker. This temporarily gives the bull the edge from the rangebound trade we had till 21st Apr.
---
1hr chart is scaling new heights, with the next resistance seen at 43012. You would have noticed banknifty usually uses gaps to move the distance from 2022 onwards. Only rarely we see banknifty making huge moves during the day.
This has cooled off the options premium again, I shorted few PUT options today very well knowing that they are already near the fair value. I was not surprised to end the day in losses as there was no further decay left in the options I traded. Literally pointing that option-selling is getting very unattractive at low volatility levels.
