04 Jan ’24 — Banks does the powerlifting for the reversal today

NSE:BANKNIFTY   Nifty Bank Index
BankNifty Analysis - Stance Neutral ➡️
The powerlifting was done by BankNifty today. The Bajaj Finserv and Finance were on fire today and were propelling FinNifty to a higher variance than BankNifty earlier in the day. However, the close ensured the variance was less than 0.2%

4mts chart link
Honestly, we did not see this coming. The setup was perfect for a Bear run, the first hour of trade almost froze us so that we could not build onto expiry positions on Nifty. Since the stop loss was hit, we had to make multiple adjustments to stay in green. Was this a turn of events or a blip is something we are not completely sure of? Ideally, the bear run was just starting, and it would be sad if it ran out like this.

63mts chart link
It is prudent to draw a new support line at 47539, the level from where we got the inflection today. To reclaim bullishness, BankNifty has to re-enter the ascending channel. If that happens tomorrow then the level to beat is 48700 which would mean it will take out the ATH. Since we changed the stance to neutral from bearish, a sensible move would be to go sideways without breaking the support of 47539.


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