7th Nov ’23 — The 11.40 candle may have a story to tell — PostMortem on Nifty & BankNifty
Nifty Analysis
Recap from yesterday: “For tomorrow, I wish to maintain the bullish stance with the first target of 19446 and then 19576. If we are going down, the first level to watch will be 19310.”
19446 level never came into the picture today, but 19310 looked quite vulnerable to a breach today. The open was in line and then we had a strong RED candle. From there the recovery went till 11.35. The next 3 candles took out only 61pts, but it seemed like we would have a retest of 19310 levels today. The selling stopped suddenly at 11.50 and we recovered all the lost points.
On the 1hr chart, things are looking still in favor of the bulls. The first Laxman Rekha to defend is 19310. For tomorrow, I wish to change my stance to neutral if 19446 is not getting broken in the opening 2 hours. I would love to go bearish if 19310 support is broken because today there were some signs of fatigue.
BankNifty Analysis
The price action on BankNifty was more than exciting. The opening minutes would have given the impression of going bearish and it would have played out well till 11.50 wherein we fell 322pts ~ 0.74%. The 11.40 candle just went through the 43404 support as simple as that, reinforcing the bearish intent.
What happened next would have surprised everyone. We took support at 43280 levels (much above the 43253 support zone) and then pushed through the resistance of 43404 with a nice GREEN candle. It did not stop there, it went on to break the swing high and close at 43780 levels. A whopping 515pts ~ 1.19% rally from the low of the day. The only reason I did not go short in BankNifty at 11.40 was that my margin was blocked in FinNifty. Glad that happened, else I would have hit with a sure stop-loss.
The bullish call on BankNifty continues and my next target would be 44063. The last 4 hourly candles were in green today, especially the 13.15 candle that came right at the 43404 support level indicating further GREENish possibilities. For a bear run the support levels of 43404, 43253 have to be broken again.