PostMortem on BankNifty Today & Analysis of 26 APR 2023
I am sure most of the traders would be surprised with the kind of bullish price action we saw after 10am.
Since
SPX closed -1.58%, 
NDQ -1.89% yesterday - most of them including me expected 
NIFTY and 
BANKNIFTY to close in deep red today.
The gap down opening at 42559 was perfectly at the support level and from there we wont only 163pts down to reverse the direction & sentiment.
We had a rally of 1.01% ~ 426pts from the LOD. The price action at the SR level is worth mentioning as we spent 55mts there before breaking out.
There is no surprise with banknifty closing in green as bullish is the prevailing trend on the 1hr chart - but to have outperformed the US markets is real something.
Although I do not know what is the reason - it is worth researching on as the US market dips were due to the banking sentiment yesterday - First republic bank, UBS. This literally had no impact on our banks is something thats worth mentioning.
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Nifty50 had a similar chart with banknifty but it looks more positive. It has caught up to the recent swing high of 13th April indicating the weakness in IT may have got overshadowed by other performers.
---
15mts chart is now looking bullish again after yesterday's subdued performance. The next resistance is seen at 43012. The support of 42576 which held its ground today will give the bulls a lot of hope today.
---
1hr is also looking strongly bullish. The independent islands formed by the gap-ups shows the strong momentum too.
Although hard to believe - banks in India are proving to be very strong & resilient to global bad news. My question is are the foreign institutional investors also thinking so?
Since
SPX closed -1.58%, NDQ -1.89% yesterday - most of them including me expected NIFTY and BANKNIFTY to close in deep red today. The gap down opening at 42559 was perfectly at the support level and from there we wont only 163pts down to reverse the direction & sentiment.
We had a rally of 1.01% ~ 426pts from the LOD. The price action at the SR level is worth mentioning as we spent 55mts there before breaking out.
There is no surprise with banknifty closing in green as bullish is the prevailing trend on the 1hr chart - but to have outperformed the US markets is real something.
Although I do not know what is the reason - it is worth researching on as the US market dips were due to the banking sentiment yesterday - First republic bank, UBS. This literally had no impact on our banks is something thats worth mentioning.
---
Nifty50 had a similar chart with banknifty but it looks more positive. It has caught up to the recent swing high of 13th April indicating the weakness in IT may have got overshadowed by other performers.
---
15mts chart is now looking bullish again after yesterday's subdued performance. The next resistance is seen at 43012. The support of 42576 which held its ground today will give the bulls a lot of hope today.
---
1hr is also looking strongly bullish. The independent islands formed by the gap-ups shows the strong momentum too.
Although hard to believe - banks in India are proving to be very strong & resilient to global bad news. My question is are the foreign institutional investors also thinking so?
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