PostMortem on BankNifty Today & Analysis of 26 MAY 2023
How the day started and how it ended was similar to a bollywood movie. Just look at the encircled 1st candle and then the 1.10% ~ 480pts rally that followed.
Logically the move we had in the day was in agreement with the momentum that started yesterday 14.05. But it would have been my anchoring bias, I was still looking for bearish opportunities when there was none.
Banknifty did not rally on its own, it was just an afterburner effect when nifty broke the 18419 resistance at 11.40. Nifty50 was up 0.51% ~ 93pts whereas banknifty was up 0.13% ~ 57pts at 11.40 when nifty was starting its breakout
Most of the traders would have anticipated the short covering correctly after this. In fact this breakout was something we all were looking for in last week - but did not come. And of all the days today was a good day for outperformance because the US markets gave a perfect handout, SPX was up +0.88% and NDQ was up a whopping +2.46% - this tipped our NiftyIT to start the day on a strong note.
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15mts TF still shows banknifty range-bound. But looking at the options flow today, it seems like we will have a new ATH soon. The immense bullish credit spreads that were written would give immense momentum to break out from the new resistance zone of 44068 in the coming days.
Literally the bears have nothing to cheer about, for a moment we all thought a breakdown was in the making. As a wise trader once said, its good to exit with a stop loss when your view is wrong so that you live to fight another day.
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1hr TF - you would have seen me draw the triple top kind of pattern yesterday. In just today's trade banknifty is up knocking that peak. 1hr was never bearish even after so much of time spent at this level. This is because the support of 43253 is still untested once we broke out on 10th May.
to view all the charts in today's discussion visit viswaram. com
Logically the move we had in the day was in agreement with the momentum that started yesterday 14.05. But it would have been my anchoring bias, I was still looking for bearish opportunities when there was none.
Banknifty did not rally on its own, it was just an afterburner effect when nifty broke the 18419 resistance at 11.40. Nifty50 was up 0.51% ~ 93pts whereas banknifty was up 0.13% ~ 57pts at 11.40 when nifty was starting its breakout
Most of the traders would have anticipated the short covering correctly after this. In fact this breakout was something we all were looking for in last week - but did not come. And of all the days today was a good day for outperformance because the US markets gave a perfect handout, SPX was up +0.88% and NDQ was up a whopping +2.46% - this tipped our NiftyIT to start the day on a strong note.
---
15mts TF still shows banknifty range-bound. But looking at the options flow today, it seems like we will have a new ATH soon. The immense bullish credit spreads that were written would give immense momentum to break out from the new resistance zone of 44068 in the coming days.
Literally the bears have nothing to cheer about, for a moment we all thought a breakdown was in the making. As a wise trader once said, its good to exit with a stop loss when your view is wrong so that you live to fight another day.
---
1hr TF - you would have seen me draw the triple top kind of pattern yesterday. In just today's trade banknifty is up knocking that peak. 1hr was never bearish even after so much of time spent at this level. This is because the support of 43253 is still untested once we broke out on 10th May.
to view all the charts in today's discussion visit viswaram. com
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