PostMortem on BankNifty Today & Analysis of 30 MAY 2023 FinNifty

Yesterday's high of 44483.35 broken today, the new ATH is now 44498.6 thanks to the last 2 5mts candles of today. Banknifty is now in some real good form - not planning to retire any time soon. Would have got some inspiration from MSD from the IPL 2023.
The opening was not that exciting, we even fell in the first 5mts to hit an intraday low of 44207.5. But again no intention to hit the first support at 44068. From there the price action was flattish. 
In the opening minutes, I felt Nifty50 to be more promising of a bull run today vs banknifty looking at the options data and the credit spreads getting written at PE.
But Nifty's momentum faded out after 10.15, nevertheless it also ended the day in green but just ~ 250+ points to reclaim the ATH.
The run in Indian stock markets has been nothing short of surprising, even with the currency devaluation our markets has continued to outshine for the domestic investors. I am really worried about the foreign investors - are their Indian portfolios still in green?


15mts TF shows strength today as the gap up of yesterday's was not broken. The momentum is favoring the bulls. As long as the gap-up level holds the bulls will continue to keep their position alive as it will be in profit.
If there is a deeper cut, these bulls should run for cover creating a small fall even lower than the recent swing low. For that to happen we need some news/event trigger because as it stands now - its euphoria.


1hr TF also shows strength, same reason - the gap being untested. Also the 5 candles of consistent green today - something you dont expect after a big rise.
Might be the news of ATH getting taken out would have hit the media and new participants would have entered the markets (the volume does not say so)


FinNifty expiry Special
CNXFINANCE also hit a new ATH today 19636.9. The rally of 117pts coming after 14.00. Of which 60% of the pts coming after 15.05. Market makers & Big Boys have a new system to rally or break the markets after 14.30 these days causing minimal impact to the options premium.
But one exception would be the 19600 CE Finnifty that went up a whopping 2835% between 15.05 to 15.10. Price wise a rise from 0.5 rupees to 14.85 rupees. Finally it settled at 6 rupees.
Again a perfect example of how options trading can reward the knowledgeable and the person who acts on that.

to see all 6 charts of today visit viswaram. com


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.