17 Aug ’23 Post Mortem on BankNifty + Weekly Expiry Analysis
BankNifty Weekly Analysis
The bears have managed to take out 674pts ~ 1.52% between the last expiry and today. A sign of momentum getting built. We have taken out 1 important support level of 44068 in this week - something to cheer for the bears. Overall sentiment is looking bearish as the EMAs are diverging.
BankNifty Today Analysis
We had a flat today, but there was some important action today. Banknifty rallied 231pts ~ 0.53% between 09.35 to 11.05 in a show of character. Guess what point we had the reversal then? 44068 which is the marked SR zone.
The fall from 11.05 lasted till 12.55 with over 321pts ~ 0.73% shed. The good thing for the bulls was that the selling stopped there. We did not retest the swing low of 43600 nor the next support of 43404.
I would say banknifty had so much potential firepower today - visible from the more than usual premiums for OTM. But it did not materialise into actionable swings. Possibly the movements may come tomorrow - let us see how deep the bears can gap us down.
The steepness of the bearish trend line may be at the same angle as that of Nifty, but the action looks more intense for BankNifty. Since the support level of 44068 was not defended and the resistance got rejected - the floor is now open for the BEAR DANCE.
The next support comes 400pts lower and if we manage to take that out with pace - the further drill downs will be easy. On the contrary if we fall slowly, it will open up a congestion zone and the bears may cede control. I wish to maintain the bearish stance for tomorrow as well.
If you have any queries - please drop comments below, I will reply.
The bears have managed to take out 674pts ~ 1.52% between the last expiry and today. A sign of momentum getting built. We have taken out 1 important support level of 44068 in this week - something to cheer for the bears. Overall sentiment is looking bearish as the EMAs are diverging.
BankNifty Today Analysis
We had a flat today, but there was some important action today. Banknifty rallied 231pts ~ 0.53% between 09.35 to 11.05 in a show of character. Guess what point we had the reversal then? 44068 which is the marked SR zone.
The fall from 11.05 lasted till 12.55 with over 321pts ~ 0.73% shed. The good thing for the bulls was that the selling stopped there. We did not retest the swing low of 43600 nor the next support of 43404.
I would say banknifty had so much potential firepower today - visible from the more than usual premiums for OTM. But it did not materialise into actionable swings. Possibly the movements may come tomorrow - let us see how deep the bears can gap us down.
The steepness of the bearish trend line may be at the same angle as that of Nifty, but the action looks more intense for BankNifty. Since the support level of 44068 was not defended and the resistance got rejected - the floor is now open for the BEAR DANCE.
The next support comes 400pts lower and if we manage to take that out with pace - the further drill downs will be easy. On the contrary if we fall slowly, it will open up a congestion zone and the bears may cede control. I wish to maintain the bearish stance for tomorrow as well.
If you have any queries - please drop comments below, I will reply.
