viswaram

viswaram

Quite glad yesterday's shorting idea worked - read here. But not that glad the last 2 hour recovery really messed with my analysis. Bank nifty opened gap down at 41462 (right at the support line of 41459). BN tried to close the gap in the first 5mts itself but didnt have enough momentum. Yesterday we had analyzed the heavy option writing volume for the far OTM...

viswaram

Bank nifty might have closed in the green today, but i am of the opinion that the price action formed today is negative. I would like to short bank nifty from here especially because its weekly expiry tomorrow. BN opened gap up at 41914 made a strong red candle - keep in mind this is the all time high. Although the first candle was red - its not the base reason...

viswaram

Quite an eventful day today, Banknifty opened mega gap up at 41740 crossing 2 resistance levels in a single go (41314 & 41459). The first candle was red but with a long wick on the bottom - indicating that the opening trade was favoring the buyers. The major reason for the gap up was SBI which published good results this quarter. There was a decent fall till 11.25...

viswaram

Banknifty opened right at the support/resistance level of 41314 touched the next resistance level of 41455 in the first candle. The 3rd candle showed a bullish tone when i thought BN took support at 41314 and rallied again to 41455, but over the next 2 candles BN gave away that hope. By 09.40, bank nifty had dropped below the SR level and traded the entire day...

viswaram

Bank nifty moved today quite contradictory to the global moves. Frankly what is happening to India's banks - is there so much positivity to bury the global macros ? S&P500 down 2.5&, Nasdaq100 down 3.39% and our bank nifty up 0.37% today Just look the opening 4 candles. Gap down opening at 40873 very near to the support level of 40867 - hits the resistance level...

viswaram

Glad yesterday’s short call worked on bank nifty — read here. The price action formed today is an extension of what was happening yesterday. Apart from the big opening red candle — the rest of the movement is in continuation. Price action of bank nifty index in 5mts chart Speaking of the first candle — it was a story by itself. Gap up opening at 41472 also...

viswaram

Bank nifty ended today’s trade flat with a drop of only 0.04%, but i feel the price action was on the negative side. BN opened gap up at 41552 made a red candle first 5mts, and then rallied all the way to 41656 by 09.50. The change in options premium on the PE side was indicating further upmove — you can check the surge in premiums of far OTM PEs. I was also of...

viswaram

Bank nifty opened gap up at 41265 rallied above the resistance line and closed the first 5mts candle in red. The length of the candle was quite long — indicating the amount of trades taken place to settle the price discovery. Again the opening is by a gap — which indicates the shift in macro outside of our trading hours. The best trades that can be taken are...

viswaram

Bank nifty opened at 41236 below the resistance level of 41312 & made a real green bullish candle. A move of 206pts in the first 5mts itself. This did not last and the gain was given up by 09.50 wherein the support level was broken conclusively. There was a test at this SR level, price action from 09.55 to 10.15 — but the selling proved quite strong. And what we...

viswaram

I will be slightly modifying the daily postmortem journal to include 5 major sections 1. Price action of bank nifty index 2. Price action of the 6 major components in bank nifty 3. The option strategy that would have worked today 4. Comparison of BankNifty vs SPX (S&P500 US index) 5. 15mts & 1hr TF of Bank nifty to view the broader trend Bank nifty opened gap up...

viswaram

Banknifty opened gap up at 41513 much above the final resistance level of 41312. The first candle was a huge bearish one with its close breaking the support level. I seriously expected the further candles also to be bearish as the tone set was bearish. But what followed was quick recovery ie from 09.20 to 10.05, the reason i said recovery was because there was no...

viswaram

We just had a 1hr of trade today - Muhurat Trading as part of Diwali 2022 ie from 18.15 to 19.15. Bank nifty opened gap up at 41348 just above the resistance level of 41312 made a confusing kinda kindle the first 5mts. The wicks were very long as well as the body - so the momentum was hard to guess. For the next 10 candles BN traded just below the resistance...

viswaram

Bank nifty opened gap up at 40370 almost midway between the support & resistance levels. The opening 15mts indicated the direction is towards upside (3 good green candles) and we were not disappointed. Usually BN makes fake move in the opening minutes - but today’s strength was quite strong. #AXISBANK had announced good results & this was the fresh trigger that...

viswaram

Bank nifty opened gap down at 40149 almost at the support level and then continued to trade downwards. Looking at the first 15mts of trade i thought we would see a giant red daily candle - but that did not happen. The selling got arrested 39887 level even before the 2nd level of support reached. This may indicate that today’s trade is just positioning for the...

viswaram

Bank nifty opened gap up at 40556 and tried very hard to go up, even though it tried for the first 18 candles - BN was unable to just rally. This may be due to exhaustion after few days of rally. Or maybe the fresh longs are waiting on the sidelines for another trigger. From 10.40 to 13.05 we had a beautiful fall which even closed the gap, but couldnt take out...

viswaram

Bank nifty opened gap up at 40252 much above the resistance level of 40154. The first candle was bearish, so was the price action till 09.35. But the support level of 40154 held quite strong and there was an immediate bounce. The green candle at 09.40 almost took back the bearishness of the preceding 3 candles. For the remainder of the day, bank nifty traded in...

viswaram

Bank nifty opened right at the support level, made a hammer kind of pattern in the first candle. The next candle close was above the support line and then the next 2 candles were of strong bearishness. Looking at the first 20mts of trade i strongly felt bank nifty may trade lower. But what really happened was a strong rally from 09.35 to 10.20. This is quite...

viswaram

BN opened mega gap up at 39446 breaking through 2 resistance levels in a single go. Even after mega gap-up - never in the day BN attempted to close down the gap - this shows the immense short covering + fresh long additions in the opening hour. Traders who had the guts to do the 9.20 straddle would have made lot of money today in spite of the surge in options...