23 Feb ’24 — Indices take a pause — yet again.

Nifty Analysis — Stance Bullish ⬆️

Recap from yesterday: “As soon as the 22051 resistance gave away, we had to change our stance from neutral to bullish. We would now like to see how higher the markets can go, we are assuming the momentum may not take us to 22700 for the monthly expiry.”

4mts chart

All 3 indices — Nifty50, BankNifty, and NiftyIT- were stuck in a tight range today, something that we usually see after a fast & furious move. The experts usually call it a flag pattern where a slight downward day occurs after a steaming UP day. Technically a pause also made sense — markets may be recalibrating between the short covering yesterday and a possible long build-up for next week. As long as the global macros remain positive, Nifty should remain charged up and ready to roll.

The indices staying flat would have ensured the straddlers would have made some money today, BN was quite shaky though — most likely it would have ended up hitting both stop losses. Nifty was far more stable today.

The flag pattern is quite prominent on the higher timeframe. We are not suggesting that all “roads lead to Rome theory” i.e. everything is bullish, but the probability of things going up seems higher than cutting through the supports of 22051 & 21913. You know us, the moment the supports are broken, we will exit the bullish position at a loss and go neutral. Till then we are going to keep looking upwards.

63mts chart

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BankNifty Analysis — Stance Bullish ⬆️

BankNifty fell 108pts today and still, it looks bullish for us. The reason is, the bearish trend line was rejected and as long as we stay on top — we are immune to bear attack. A few candles were quite abnormal today, with the price action from 10.19 to 10.38 and then the 13.19 candle that single-handedly took out 193 points. Even after all that, the bears were not able to get a close below the support line.

4mts chart

On the higher time frame, BN has made a double top at 47200 levels. We will be considering that with a pinch of salt as we do not know what technical pattern gets a higher priority — the double top or the support rejection. We might have to go with the trend here and assume the direction is upward. We will only get to know this when BN attempts the next resistance of 47465. A resistance rejection would tip the scale in the Bear’s favor.

63mts chart

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Algo Trading

Our algo trades ended today with a gain of 9930 points.

Intraday Algos run via AlgoTest on Kotak

Webhooks automation run via TradingView on Dhan

PS: The trades taken are no recommendations, blindly following them may cause more harm than good. Read them with an educational intent only as I am not SEBI registered- full disclaimer here

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