20 Jul ’23 Post Mortem on BankNifty | Bull run is not stopping!
Banknifty also outperformed this week, between the last expiry & today it is up 1443pts ~ 3.23%.
Unlike Nifty50 my positional call on Banknifty did not go wrong, that was mainly because we negated a bearish trend line this week. Usually when the trendlines are broken the breakout momentum is so strong that it could take the index to an overbought level too.
Daily Analysis
Banknifty’s 5mts pattern has some story to tell, notice the period till 10.00 where nifty was falling, banknifty held its ground. In fact the real rally did not take off till 11.45. From there it went up 497pts ~ 1.09% by 14.30. This rally from a point of strength gave a steady grip for Nifty to play its natural game!
We made a new ATH of 46256 today, the weird thing is we had a retracement of 231pts ~ 0.5% between 14.30 to 14.50, the pullback to that was more weird - we gained back all those points in the next 20pts.
The expiry premiums for the PEs were quite unrealistic, the premiums were jumping so aggressively that it gave out a lot of easy money minting opportunities. Usually the volatility increases like this during market crashes. Probably this would be the first time where the PUT options were in deep green when the markets were going up.
Unlike Nifty50 my positional call on Banknifty did not go wrong, that was mainly because we negated a bearish trend line this week. Usually when the trendlines are broken the breakout momentum is so strong that it could take the index to an overbought level too.
Daily Analysis
Banknifty’s 5mts pattern has some story to tell, notice the period till 10.00 where nifty was falling, banknifty held its ground. In fact the real rally did not take off till 11.45. From there it went up 497pts ~ 1.09% by 14.30. This rally from a point of strength gave a steady grip for Nifty to play its natural game!
We made a new ATH of 46256 today, the weird thing is we had a retracement of 231pts ~ 0.5% between 14.30 to 14.50, the pullback to that was more weird - we gained back all those points in the next 20pts.
The expiry premiums for the PEs were quite unrealistic, the premiums were jumping so aggressively that it gave out a lot of easy money minting opportunities. Usually the volatility increases like this during market crashes. Probably this would be the first time where the PUT options were in deep green when the markets were going up.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.