19 Mar ’24 — BankNifty has another 300pts to go Bearish 🐻🐻🐻
BankNifty Analysis - Stance Neutral ➡️
The level of reluctance BankNifty shows to crack is really intense. Usually, Banks react badly to any situation. We now have a peculiar case wherein Nifty has been downward facing for the last 3 consecutive sessions whereas BankNifty has stayed neutral. BankNifty has been losing points steadily, eg: it lost 191pts today but the bearish intent is not there. And you know pretty well we cannot change the status to bearish unless the “Bears” actually push down the index with momentum. We would need a breach of support or a re-entry to the bearish channel for that.
4mts chart
Even though BN lost a few points today, it was nothing comparable to Nifty (-1.08%) and NiftyIT (-2.9%). None of the Nifty subsectors were in Green today. The main sector fighting for the bulls was the Financials. My eyes were totally glued on ICICI Bank and HDFC Bank today, despite N50 falling both these banks held their ground pretty strongly. In many instances, both were trading against the current.
On the higher time frame, BN has less than 300pts to enter the bearish channel. Tomorrow being the weekly expiry, we are pinning the hopes for a classic bear attack. We would prefer to start the day neutral and go short only if the conditions are met. A rising VIX would be the 2nd clue we might be watching for.
63mts chart
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Algo Trading
Our algo trades ended today with a gain of Rs27216. I wound up the trades at 12.48 as almost 95% of the target was done and did not want to lose out to a possible directional trend.
The level of reluctance BankNifty shows to crack is really intense. Usually, Banks react badly to any situation. We now have a peculiar case wherein Nifty has been downward facing for the last 3 consecutive sessions whereas BankNifty has stayed neutral. BankNifty has been losing points steadily, eg: it lost 191pts today but the bearish intent is not there. And you know pretty well we cannot change the status to bearish unless the “Bears” actually push down the index with momentum. We would need a breach of support or a re-entry to the bearish channel for that.
4mts chart
Even though BN lost a few points today, it was nothing comparable to Nifty (-1.08%) and NiftyIT (-2.9%). None of the Nifty subsectors were in Green today. The main sector fighting for the bulls was the Financials. My eyes were totally glued on ICICI Bank and HDFC Bank today, despite N50 falling both these banks held their ground pretty strongly. In many instances, both were trading against the current.
On the higher time frame, BN has less than 300pts to enter the bearish channel. Tomorrow being the weekly expiry, we are pinning the hopes for a classic bear attack. We would prefer to start the day neutral and go short only if the conditions are met. A rising VIX would be the 2nd clue we might be watching for.
63mts chart
–
Algo Trading
Our algo trades ended today with a gain of Rs27216. I wound up the trades at 12.48 as almost 95% of the target was done and did not want to lose out to a possible directional trend.
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