20 Jun 2024 — I am switching back to southpaw, prioritizing BankNifty over Nifty for trading +…
Nifty Stance Bullish ⬆️
We saw what happened yesterday, the kind of unusual price swings, the likes of a pump and dump scheme almost. We had a V pattern and an inverted V pattern yesterday itself and even the bravest of the algo traders would have failed to firefight it. I did lose pretty badly yesterday too, not unhappy with the losses per se — but quite unhappy with how the price manipulations unfolded.
Today was a wait-and-watch mode for me and as the price rigging unfolded between 13.19 and 14.19, I decided to switch back to my older trading technique (switch to southpaw strategy, famous in Rocky 2 movie starring Sylvester Stallone).
Most of you might be aware that, BankNifty was my preferred index for trading till Jan 2023 after which I switched to Nifty50 as the premiums on BN were unusually low. Now that N50 is simply untradeable, I have decided to stop the algos and do just discretionary.
Over the last week, N50 has managed to rise 172pts ~ 0.74% to hit a new ATH of 23664. The stance is still bullish but signs of tiredness are starting to emerge. Keep an eye on market breadth.
BankNifty Stance Bullish ⬆️
Unlike Nifty, banknifty had more stability today but yesterday’s outlier performance had its implications today. The premiums of CALL options were too pricey, which then normalized as the day progressed. Do not really know how the banks have so much of a firepower to keep going up, we are at the top and the banks are hungry for more.
From a macro perspective, we have two news speculations/rumors going around
- Govt. of India is planning to increase taxation to prevent HFTs and Algo firms from exploiting the retail traders.
- Govt. of India is planning to increase taxes on FnO, and make it a speculative model (similar to lottery and crypto) to discourage retail traders from losing.
I see the Govt. being opportunistic and raising the taxes by sugar coating the narratives. Too much of taxes will spoil this industry and the main thing that got the current government re-elected was the perception of the Indian economy through the lens of stock markets.
The stance on BN continues to be bullish, we are all actively watching the space to know when we run out of steam — till then the dance should not stop.
Intraday Algos run via AlgoTest on Kotak
Webhooks automation run via TradingView on Dhan
Book a free consultation — Get your mutual fund holdings audited based on your risk profile — https://learn.viswaram.com/knowmore