13th Nov ’23 - BankNifty Postmortem Bullish Channel or Bearish🏴
BankNifty Analysis
Banknifty also erased the gains it made on Diwali Mahurat trading. Today’s close is almost at the same level as of 10th Nov. Interestingly BN tested the resistance of 44063 on Sunday from where it was rejected.
Sunday’s trade could be thought of as manipulated (legally) as most of them come with a bullish bias for Muhurat trades. Few of them deploy their Diwali corpus on stocks, etf, gold etc. But today’s initial price moves suggest the sellers are not done yet. After opening gap down, we went another 252pts lower and then climbed back - just like a warning shot.
But BankNifty recovered much more elegantly compared with Nifty. By 14.35 we almost closed the gap.
There are 2 ways to look at the ascending channel. Either it's a strong breakout candidate or it may be a downward flag consolidation phase on a weekly time frame. The only way to confirm is to wait for clarity. If it's an upmove, 44063 has to be taken out immediately. If we are staying as it is or dipping, the bears will take it up from here. For Wednesday, I wish to maintain my neutral stance till one of these levels gets broken (44063, 43566).
Banknifty also erased the gains it made on Diwali Mahurat trading. Today’s close is almost at the same level as of 10th Nov. Interestingly BN tested the resistance of 44063 on Sunday from where it was rejected.
Sunday’s trade could be thought of as manipulated (legally) as most of them come with a bullish bias for Muhurat trades. Few of them deploy their Diwali corpus on stocks, etf, gold etc. But today’s initial price moves suggest the sellers are not done yet. After opening gap down, we went another 252pts lower and then climbed back - just like a warning shot.
But BankNifty recovered much more elegantly compared with Nifty. By 14.35 we almost closed the gap.
There are 2 ways to look at the ascending channel. Either it's a strong breakout candidate or it may be a downward flag consolidation phase on a weekly time frame. The only way to confirm is to wait for clarity. If it's an upmove, 44063 has to be taken out immediately. If we are staying as it is or dipping, the bears will take it up from here. For Wednesday, I wish to maintain my neutral stance till one of these levels gets broken (44063, 43566).
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