11 Mar ’24 — BankNifty breaks 47465, next SR 1000 points lower
BankNifty Analysis - Stance Neutral ➡️
We have a change in stance on BN today, As soon we had a closing below 47465 we changed the stance from bullish to neutral. We fell 693pts ~ 1.45% today and the structure was pretty negative. BN never really tried to retrace the fall today, just had 1 minor rejection at the support at 11.23, but yielded by 11.55. The ease with which the support got broken got me thinking, what was the real bad news today? I remember seeing the Japan Nikkei trading with cuts of -2.3%. But other than that, I really dont remember reading any other bad news.
4mts chart
On the higher time frame, notice the depth of the RED candles till the support was broken. The single GREEN candle of 6th Mar 09.15 has been negated. Since we broke the support of 47465, the stance is now neutral. For tomorrow we wish to start with non-directional trades on BankNifty and go long if the 47465 resistance gets broken. To go short, BN will have to re-enter the bearish channel and that is like 1000pts away. If we were to fall that many points in a day, we are quite sure Nifty50 will also fall equivalently and most likely go bearish as well. Honestly, why would markets fall that much, what is the reason?
63mts chart
—
Algo Trading
Our algo trades ended today with a gain of 20165. Manually squared off the trades at 14.21 just when the markets started to get volatile.
We have a change in stance on BN today, As soon we had a closing below 47465 we changed the stance from bullish to neutral. We fell 693pts ~ 1.45% today and the structure was pretty negative. BN never really tried to retrace the fall today, just had 1 minor rejection at the support at 11.23, but yielded by 11.55. The ease with which the support got broken got me thinking, what was the real bad news today? I remember seeing the Japan Nikkei trading with cuts of -2.3%. But other than that, I really dont remember reading any other bad news.
4mts chart
On the higher time frame, notice the depth of the RED candles till the support was broken. The single GREEN candle of 6th Mar 09.15 has been negated. Since we broke the support of 47465, the stance is now neutral. For tomorrow we wish to start with non-directional trades on BankNifty and go long if the 47465 resistance gets broken. To go short, BN will have to re-enter the bearish channel and that is like 1000pts away. If we were to fall that many points in a day, we are quite sure Nifty50 will also fall equivalently and most likely go bearish as well. Honestly, why would markets fall that much, what is the reason?
63mts chart
—
Algo Trading
Our algo trades ended today with a gain of 20165. Manually squared off the trades at 14.21 just when the markets started to get volatile.
