PostMortem on BankNifty Today & Analysis of 14 FEB 2023
My bearish call for yesterday turned out to be wrong - sorry to have disappointed you !
We had a dramatic performance by
BANKNIFTY
today even after a higher than expected inflation of 6.52%. Although we had 2 sharp moves, none of the support or resistance was broken - which means we still have no clue on the direction.
BANKNIFTY
opened at 41410 made a low at 9.47 just 0.51% ~ 212pts drop. Although this level does not have any major support or resistance -
BANKNIFTY
was not falling.
There was a sideways movement till 11.25 after which it started picking up direction. I am not quite sure what gave away suddenly - was it the more than expected profit report from Adani enterprise that helped the bank's jump?
There was an intraday rally of 1.13% ~ 465pts from the stable level at 11.30 to 14.35. There was a near vertical move from 13.45 to 14.10 - all green candles.
What this did to the option prices was that the CE shorts got covered and fresh PE shorts were written. The surge in options volume shows that. I cannot really say that the 41624 resistance was taken out as the final close was at 41617, still this sudden surge in prices brought about a sentiment change from negative to neutral.
---
15mts chart is still showing sideways ie neutral, today we ran out of time to break the resistance level. So if tomorrow we start gap-up then we might see fresh longs added. 41624 resistance has not given away in the last 5 attempts.
---
1hr TF is still not bullish or neutral, it still looks bearish to me. If the resistance gets taken out - then i too will look out for bullish trades esp because the expiry is coming up in 2 days.
---
Almost all banks had a breakout trade today, the swing range from LOD to HOD marked.
HDFCBANK
had a swing of 1.1% from LOD to HOD - not that much to comment about, but this bank was staying & took out the swing high of 6th Feb
ICICIBANK
had a swing of 1.68% of this a single candle at 13.55 brought in 0.41%.
SBIN
was below water today and the surge not only helped it close in green, but pulled bank nifty's gain to 0.9%. There was a swing of 2.58%
AXISBANK
had a perfect V shaped chart pattern when yesterday's price action is also considered. Almost a 2% intraday swing & a near vertical trade from 13.15 to 13.55.
KOTAKBANK
was flat today
INDUSINDBK
dipped into red early in the day & then bounced back to close in green.
We had a dramatic performance by
BANKNIFTY
today even after a higher than expected inflation of 6.52%. Although we had 2 sharp moves, none of the support or resistance was broken - which means we still have no clue on the direction.
BANKNIFTY
opened at 41410 made a low at 9.47 just 0.51% ~ 212pts drop. Although this level does not have any major support or resistance -
BANKNIFTY
was not falling. There was a sideways movement till 11.25 after which it started picking up direction. I am not quite sure what gave away suddenly - was it the more than expected profit report from Adani enterprise that helped the bank's jump?
There was an intraday rally of 1.13% ~ 465pts from the stable level at 11.30 to 14.35. There was a near vertical move from 13.45 to 14.10 - all green candles.
What this did to the option prices was that the CE shorts got covered and fresh PE shorts were written. The surge in options volume shows that. I cannot really say that the 41624 resistance was taken out as the final close was at 41617, still this sudden surge in prices brought about a sentiment change from negative to neutral.
---
15mts chart is still showing sideways ie neutral, today we ran out of time to break the resistance level. So if tomorrow we start gap-up then we might see fresh longs added. 41624 resistance has not given away in the last 5 attempts.
---
1hr TF is still not bullish or neutral, it still looks bearish to me. If the resistance gets taken out - then i too will look out for bullish trades esp because the expiry is coming up in 2 days.
---
Almost all banks had a breakout trade today, the swing range from LOD to HOD marked.
HDFCBANK
had a swing of 1.1% from LOD to HOD - not that much to comment about, but this bank was staying & took out the swing high of 6th Feb
ICICIBANK
had a swing of 1.68% of this a single candle at 13.55 brought in 0.41%.
SBIN
was below water today and the surge not only helped it close in green, but pulled bank nifty's gain to 0.9%. There was a swing of 2.58%
AXISBANK
had a perfect V shaped chart pattern when yesterday's price action is also considered. Almost a 2% intraday swing & a near vertical trade from 13.15 to 13.55.
KOTAKBANK
was flat today
INDUSINDBK
dipped into red early in the day & then bounced back to close in green.