17SEP2021

🟡 #BankNifty finally tests ATH after #Long period of under performance. Finally both indices closed at ATH yesterday.
🟡 #Nifty enjoying longest rally 7511-17644=10133.4(134%, 77 Bars) from the Mar20 lows without making an 10% correction.
🟡 Previous such rally was seen in AUG2013-MAY2015 when #Nifty rallied 5118-9119(78%, 79 Bars) without 10% correction.

Technicals
🔴 Momentum indicators indicate overbought. Nifty D(86.2), W(79.27), M(79.12). No signs of exhaustion in price charts.
🟢 Price has been rising with volumes in last two sessions in both benchmark indices. #Nifty COI at last one year high.
🟡 Many have been waiting for correction and the wait has been further delayed with each massive move from the #Nifty
🔴 Historically such high RSI levels > 80 in Weekly/Monthly is followed by a decent correction in the equity markets.
🟢 Still as long as #Nifty is trading above 17366/17212 on day closing basis all looks fine and in favor of the bulls.

Global markets
🟠 US markets recovered from lows but closed lower. Looks like market worried of possible corporate tax hike in budget.
🟠 European markets opened very strongly but pared half of their gains in the second half due to profit booking.
🔴 Dollar index has been rising putting pressure on precious metals Gold and Silver. Can be a cause of concern now.

News & Outlook
🟢 Finance minister declares bad banks, positive for banks after the telecom package which was one sentiment booster.
🟠 Tapering fear so far ignored by equity markets as macro economic data came better delaying tapering speculations.
🟠 HangSeng & Shanghai has their own worries because of which they are falling and trading volatile. Can be ignored.

TradePlan:

🔴 With all good news being out, high PCR, non institutional participation in this rally doesn't make things exciting.
🟢 Selling 17600 + ATM #Straddle after 9.30 can be a good idea. After 2 trending days market may consolidate today.
🟢 Bad bank news may not be priced in. Hence another leg of up move cant be ruled out in #BankNifty towards 38/38.2K.
🟡 Profit booking in case of a wild gap up can be a good idea basis price action in lower timeframe charts (15/25M)

#Nifty Fut 17378/17436/17482/17521 - 17665/17694/17717/17759
RDX Trend & Momentum Score - 75M(5*)/1D(5*)/1W(5*) #Bullish

#BankNifty 37065/37242/36367/36446 - 37946/38045/38266/38415
RDX Trend & Momentum Score - 75M(5*)/1D(5*)/1W(5*) #Bullish

#TradePlan #PreOpenUpdate #IndexFutLevels #17SEP2021

コメント:

🟢 #BankNifty moved to 38.2K before profit booking. View materialized.
🟢 Strong profit booking came in #Nifty after first hour strong rally.