28 Jul ’23 Post Mortem on Nifty & BankNifty | Beautiful recovery in final 45mts to disappoint the…
Nifty Analysis
The open was as expected and the first 2 candles made sense when we retouched yesterday’s swing low.But what followed after that was more of a discouragement for the bears. No matter how hard the bears try — they are unable to push down the prices.
We had a gradual fall to the intraday low of 19563 which was hit by 13.45 — and this was the time by which the bulls took over. The bulls were able to rally Nifty back to yesterday’s closing level. By 15.07 Nifty turned green and then dipped a bit to close at 19646 just 0.07% in red.
The last 45mts helped Nifty climb 99pts ~ 0.51% on what looked like a fairy tale like ending. The real reason was the lack of participation of commodity, consumption, energy, fmcg, pharma and metal indices. Finally it seemed like only the financial and IT indices wanted RED.
What today’s move means is Nifty50 is an untradeable range as of now, we need to either break 19521 on the downside or break 19729 on the upside for a directional game.
BankNifty Analysis
Banknifty did not disappoint the bears as much as Nifty did today. The day began with a gap down right at the swing low of yesterday and in no time we reached the 45380 levels. From there we had a gradual drop to the intraday low of 45238.
There was a pullback of 272pts ~ 0.6% but bears managed to close the day with a total cut of 0.46% ~ 211pts below yesterday’s close. NiftyIT had a bigger fall today, but the interesting aspect is the sector rotation was absent between the IT and banks.
Instead all the other major sectors like energy, metals, fmcg took the initiative to keep Nifty close to green and away from a bear attack.
On the 1hr TF we continue to hold onto our bearish view as long as the double top pattern holds.