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Algorithmictrading

22 Mar ’24 — BankNifty holds ground, when NiftyIT was crashingBankNifty Analysis - Stance Neutral ➡️ BankNifty stays in the neutral zone for yet another day. Even when N50 made its 1.36%, BN went up only by 0.9%. NiftyIT was tanking on one side, but BN was holding its ground from falling. I am seriously confused about whether Nifty or BankNifty has the lower beta. Even the profit booking in the last 40mts did not have a wild impact on BN but it might have taken the profits out of N50 straddlers. 4mts chart We are almost midway between the nearest support & resistance. The slope of the 200 EMA will prove the point that we are neutral, just check its slope - it's almost parallel to the X-axis. This was the major reason why I never went bearish even though we fell 2000+ points from the ATH. We continue to maintain our neutral stance for Tuesday and would like to build fresh positions based on the price action. 63mts chart — Algo Trading Our algo trades ended today with a loss of 7029 rupees, thanks to the swing from Nifty50. So for my current month, the Nifty Algos are in loss whereas BN is in good profits. This takes me back to the earlier question, which one has the lower beta?
NSE:BANKNIFTY
by viswaram
19 Mar ’24 — BankNifty has another 300pts to go Bearish 🐻🐻🐻BankNifty Analysis - Stance Neutral ➡️ The level of reluctance BankNifty shows to crack is really intense. Usually, Banks react badly to any situation. We now have a peculiar case wherein Nifty has been downward facing for the last 3 consecutive sessions whereas BankNifty has stayed neutral. BankNifty has been losing points steadily, eg: it lost 191pts today but the bearish intent is not there. And you know pretty well we cannot change the status to bearish unless the “Bears” actually push down the index with momentum. We would need a breach of support or a re-entry to the bearish channel for that. 4mts chart Even though BN lost a few points today, it was nothing comparable to Nifty (-1.08%) and NiftyIT (-2.9%). None of the Nifty subsectors were in Green today. The main sector fighting for the bulls was the Financials. My eyes were totally glued on ICICI Bank and HDFC Bank today, despite N50 falling both these banks held their ground pretty strongly. In many instances, both were trading against the current. On the higher time frame, BN has less than 300pts to enter the bearish channel. Tomorrow being the weekly expiry, we are pinning the hopes for a classic bear attack. We would prefer to start the day neutral and go short only if the conditions are met. A rising VIX would be the 2nd clue we might be watching for. 63mts chart – Algo Trading Our algo trades ended today with a gain of Rs27216. I wound up the trades at 12.48 as almost 95% of the target was done and did not want to lose out to a possible directional trend.
NSE:BANKNIFTY
by viswaram
14 Mar ’24 — BankNifty's price action overshadowed by NiftyITBankNifty Analysis - Stance Neutral ➡️ Banks were performing as expected today, even though we had a neutral view we ended up losing 0.41% for the day. The stance for tomorrow also continues to be neutral as BN did not breach support or resistance today. The starting candle was perfect as per the script, from there we rose 666pts ~ 1.43% to reach the HOD of 47231 by 11.43. The staling was obvious as there were no special triggers to take up even near the resistance level of 47465. 4mts chart The fall of 536pts ~ 1.14% from the day’s high also made perfect sense. Unfortunately, Nifty50 does not convey the real truth that happened with the banks as that index was overshadowed by stocks like Adani and NiftyIT components. On the 63mts time frame, the lower high formation looks much better than N50. Our stance continues to be neutral and would go short if we enter the bearish channel and would go long if the 47465 resistance is breached. 63mts chart – Algo Trading Our algo trades ended today with a gain of Rs21565. Even though we had a quick dip in profits by 10.37, the system recovered and closed in green.
NSE:BANKNIFTY
by viswaram