04 Sep ’23 Post Mortem on BankNifty - 60% neutral 40% bullish
Banknifty on the other hand had a freakish open and first 5mts move. Few of the OTM strike premiums shot up above 100% above the previous close values showing either low liquidity or very high speculation. We even fell 0.77% ~ 345pts between the open and 10.35 and the price action was indicating further weakness. But just like Nifty got support, BankNifty also turned right at this level.
We climbed back 277pts ~ 0.63% from there, but the bullish intent was not as strong as Nifty. The 2nd swing did not take out the day’s high set at open unlike Nifty.
BankNifty may need some stronger thrust to go fully bullish, currently it is in the process of forming a triple bottom or break-out from a double top pattern. I would like to wait for some more signals before going fully bullish. At present I am 60% neutral and 40% bullish for tomorrow.
Since we have FinNifty expiry tomorrow and BankNifty expiry on wednesday (Its first wednesday expiry after the NSE changes) - it may look interesting if we pick up some premiums by tomorrow. The best way for that is to have some violent moves.
We climbed back 277pts ~ 0.63% from there, but the bullish intent was not as strong as Nifty. The 2nd swing did not take out the day’s high set at open unlike Nifty.
BankNifty may need some stronger thrust to go fully bullish, currently it is in the process of forming a triple bottom or break-out from a double top pattern. I would like to wait for some more signals before going fully bullish. At present I am 60% neutral and 40% bullish for tomorrow.
Since we have FinNifty expiry tomorrow and BankNifty expiry on wednesday (Its first wednesday expiry after the NSE changes) - it may look interesting if we pick up some premiums by tomorrow. The best way for that is to have some violent moves.
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