29th Nov ’23 — The rocket just took off — PostMortem on Nifty & BankNifty
Nifty Analysis
5mts chart link — click here
Nifty got the right support from BankNifty today and see how it turned out today. A breakout from 19875 yesterday, propelled Nifty to 20104 today — can you imagine the firepower bulls got today? It started with a short covering in the morning but by evening it was all PUT side short build-up — indicating further surge ahead. 206.9pts gain today, the pain the bears endured today is just unquantifiable. Luckily I was on the bullish side from yesterday.
1hr chart link — click here
On the 1hr TF, we made an island day today courtesy of BankNifty (which we will discuss soon). I still continue to hold on to my long position just that I added some protection with 20000 PE buy in the last minutes of trade today. Not because I wish to change the status to neutral, but to offset the OTM PEs shorted today. Most of them were full of air today as the movement would have spiked up its implied volatility. ATH is 20222 and we are just 126 points away, there are no support/resistance zones in between too.
BankNifty Analysis
5mts chart link — click here
The gap-up was right at the SR zone of 44063 and it helped BankNifty change its sentiment. For the initial 30mts, BN was a little hesitant to make its move but as it held out the support level — it may have gained the confidence of the bulls. Hope you got my tradingview minds update as I went long today.
And yes, it was definitely a treat to watch as both BankNifty and Nifty were on the long side today. Even the NiftyIT also supported today which meant there was no stopping. BankNifty went on to gain another 569pts ~ 1.29% once it defended its support. The total gains today were 685pts ~ 1.56%.
Between 14.45 to 15.10, it took out another resistance level at 44542, this came as a surprise to me as I thought the resistance may hold. Since tomorrow is the expiry day for both Nifty and BankNifty we may some action in 2nd half.
1hr chart link — click here
See the encircled region on the 1hr TF, 15th & 16th November when we were still in that ascending channel. The news that broke ensured BankNifty fell, but see what happened — the rebound was much more powerful. Today’s 14.15 candle alone grabbed 268pts ~ 0.61% and most importantly helped BN close above this encircled region. My stance is bullish on BN with 44763 as the first target. Keep in mind, a strong resistance is coming up at 45399.