16 Aug ’23 Post Mortem on BankNifty, Bearish stance hanging on🧵
From the moment we started today, Banknifty looked and stayed bearish for the entire day today. In the opening minutes we dropped 1.06% ~ 465pts and then there was a decent recovery of 403pts ~ 0.93 by 15.05
Last session we discussed the support/resistance zone of 44068. We have broken that today and the close ensured we have conclusively breached it. HDFCBK made a decent recovery today which was the primary reason banknifty cut its losses to just 0.3% ~ 144pts today. HDCBK was carrying on the bad news that its NII will be impacted after the merger.
Banknifty does not require a stance change and we continue to remain bearish. The first support level is 43404 and the first resistance is 44068 (marked on the chart yellow horizontal lines). From an options premium perspective, even after the strong moves today - the OTM premiums were not surging - suggesting no more wild swings for the day. I was really hoping to see some action today, but ended the day on a disappointing note.
Last session we discussed the support/resistance zone of 44068. We have broken that today and the close ensured we have conclusively breached it. HDFCBK made a decent recovery today which was the primary reason banknifty cut its losses to just 0.3% ~ 144pts today. HDCBK was carrying on the bad news that its NII will be impacted after the merger.
Banknifty does not require a stance change and we continue to remain bearish. The first support level is 43404 and the first resistance is 44068 (marked on the chart yellow horizontal lines). From an options premium perspective, even after the strong moves today - the OTM premiums were not surging - suggesting no more wild swings for the day. I was really hoping to see some action today, but ended the day on a disappointing note.
