07 Mar ’24 — Another stable day, getting ready for the Next Jump?
Nifty Analysis — Stance Bullish ⬆️
Recap from yesterday: “We are maintaining our bullish stance for tomorrow as well, but we are not expecting 22600 to be broken tomorrow.”
It was another perfect day for the option sellers, mostly the short straddlers. Nifty struck a narrow range today and had no special adventures. Looking at how Nifty50 traded today makes me remember the Cricket commentators saying “After hitting the first 2 balls for 6 & 4s, take singles and rotate strikes..”. Nifty50 did the exact same thing today. The rotations were in the sub-sectors and the market breadth was improving. Media, Metal, FMCG, Pharma, Consumption, and Commodities all did well today and the laggards were Banks and Energy.
Between the last expiry and today, Nifty50 rose 440pts ~ 2%. Most importantly it took out 2 support/resistance levels — 22051 and 22295. And we rewrote the ATH twice. As it looks everything looks GREEN on this side. Tomorrow will be a holiday in India, so our next market action will be on Monday. If US markets advance and take out their ATHs by then, we can expect a huge gap up in the next session. In case the Global macros weaken over the weekend — the Bull’s party could be cut short too. Wish you a happy weekend.
BankNifty Analysis — Stance Bullish ⬆️
BankNifty showed some letting off steam today, maybe it would have exerted too much energy to break out the resistance level yesterday that it had to take a break. We only ended the day with a loss of 0.27%, considering the run we had, we can really say it’s negligible. Interestingly the Bears are still unable to push down the prices, the closest we came was at 10.43 when we felt the scale could tip in the favor for selling. Somehow BN managed to hold onto the 47489 levels. Our stance of bullish stays as it is for the next session as well.
On the higher timeframe, we have a bit more to go to take out the ATH. Monday is an ideal day for that as it should also factor in the gains of US markets today and tomorrow. And as it stands things are looking extremely bullish there. There are no noticeable events or local macros that could pull us down. Hopefully, things stay strong over the long weekend.
Algo Trading
Our algo trades ended today with a gain of 26558, was quite a relief after the RED day yesterday.
Webhooks automation run via TradingView on Dhan