21 Feb ’24 — First Real Threat for Bulls Today - Nifty50

NSE:NIFTY   Nifty 50 Index
Nifty Analysis - Stance Neutral ➡️
Recap from yesterday: “On the 63mts TF, N50 is still looking strong — we would keep our first support level(weak) at 22051 and the main support at 21913.”

4mts chart
Bulls were roaring and seemed like the entire territory was under their control and then suddenly from nowhere, we got a flash crash. Nifty50 hits a new ATH of 22249 and then falls 252 points ~ 1.13%. Yesterday we talked about the shallow support at 22051, it was interesting to see the 14.39 RED candle just did not respect that level and fell aggressively. After hitting a low of 21997 we had a pullback of 101 points, but that got sold into. The closing was strongly in favor of the Bears.
Technically Nify50 has just fallen 141 points ~ 0.64% and even after that, it is still bullish on the higher timeframes. We need to really find out what was the reason we had a flash crash today - it did not feel like a profit-booking stunt. It appeared more like a news/event released to a selected few participants. Since Nifty50 fell below our support line, we had to reverse the stance back to neutral. In case Nifty50 climbs back up tomorrow and hits a new ATH, today’s move will just appear as a blip, and the stance will go back to bullish.
On the higher timeframe, Nifty is below the 22051 resistance and above the strong support of 21913. If the Bears are planning for another attack tomorrow just like the one we had today - then we strongly feel that the 21913 level should be tested and even broken. Ideally, the opening 1st & 2nd candles will give away the directional trend. Interestingly, BankNifty did not participate in the downward trend today, most likely it may be attributed to the expiry and the aggressive positions taken by the smart money. Anyway, we will get to know by tomorrow if the Bears are back or not.

63mts chart


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