30th Oct ’23 - Neutral on BankNifty till 43404, bulls are back?
BankNifty Analysis
Since BankNifty is in the neighbourhood of support and resistance, it is quite easy to explain with examples. The open was almost inline but we started dropping fast. We gave up 438pts ~ 1.02% by 09.40. Unlike Nifty50, I did not find it that encouraging to look out for bearish opportunities. The main reason is the decay of premiums. None of the OTM strikes had excess juice for the squeeze - so I just chose not to participate.
At 09.20 we had the first breach of 42576 support, the strong red candle was ample proof of strength. On its way back 3 strong green candles negated the 42576 resistance. Then between 13.00 to 13.20 we had a smooth rejection of resistance2 at 43012. My mistake was to assume that we would close below 43012, this was proven wrong between 15.00 to 15.20 when this level was taken out.
On the 1hr TF the next level to watch out on the upside is 43253 followed by 43404. If we were to fall 42576 has to be taken out pretty quickly and the next support comes only at 41624 - so the bears need to have strong momentum. I wish to maintain my neutral stance till 43404 is not taken out.
Since BankNifty is in the neighbourhood of support and resistance, it is quite easy to explain with examples. The open was almost inline but we started dropping fast. We gave up 438pts ~ 1.02% by 09.40. Unlike Nifty50, I did not find it that encouraging to look out for bearish opportunities. The main reason is the decay of premiums. None of the OTM strikes had excess juice for the squeeze - so I just chose not to participate.
At 09.20 we had the first breach of 42576 support, the strong red candle was ample proof of strength. On its way back 3 strong green candles negated the 42576 resistance. Then between 13.00 to 13.20 we had a smooth rejection of resistance2 at 43012. My mistake was to assume that we would close below 43012, this was proven wrong between 15.00 to 15.20 when this level was taken out.
On the 1hr TF the next level to watch out on the upside is 43253 followed by 43404. If we were to fall 42576 has to be taken out pretty quickly and the next support comes only at 41624 - so the bears need to have strong momentum. I wish to maintain my neutral stance till 43404 is not taken out.
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