04 Mar ’24 — A Perfect Flat day, straddlers would have fallen asleep today — Nifty & BankNifty…
Nifty Analysis — Stance Bullish ⬆️
Recap from yesterday: “The odd man out today was NiftyIT, which did not want to participate in the rally and instead went the other way. It ended the day with a loss of 204 points.”
NiftyIT again shows its rebel attitude today, on a flattish day — NiftyIT losses 291 points ~ 0.77%. I am not suggesting that a stronger IT would have helped Nifty50 scale new heights today, just that the negative bias did not fit well with the other counters. Nifty and BankNifty had a perfectly flattish day today — a dream come true for the straddlers. Not conceding ground is still Bullish as the Bears are running out of fuel. Despite FIIs selling today — it really did not make a difference on the main indices.
On the higher timeframe, we have formed an island (Mar 2nd + today’s price action). On 2nd March we had the special session on which Nifty hit a new ATH of 22463. We did not take that out today, but the flattish stance bodes well with the Bullish narrative. Our stance continues to be bullish and the first support level would be 22295. It is a shallow support and not quite relevant for a stance change, but the momentum is what really matters. Since we do not have a resistance, the markets could go up to any extent and personally, I am not in favor of shorting even 22700 or 22800 as a single stride could wipe us out.
BankNifty Analysis — Stance Neutral ➡️
BankNifty is still stuck at the 47465 resistance level and this according to me was the primary reason why even Nifty could not find the upward thrust. There were 4 specific instances when BN tried to break the resistance and move up but all of them got rejected. This does not really mean that the Bulls are tired or out of steam, it is just that they are unable to win the hand.
By this time, we all know what is going to happen next — A gap-up above the resistance line and then boom-boom. The gap-up will change the dynamics in the Bull’s favor and the short covering will give it a bit more thrust. The moment that happens, we will be able to change the stance from neutral to bullish. This would also mean Nifty50 would be scaling new heights. What is totally unpredictable is NiftyIT, playing hard to get. Seems like the fight to be the Nifty’s torch bearer is happening between IT and Banks.
Algo Trading
Our algo trades ended today with a gain of 27037. We manually closed the day @ 11.15 as the MTM felt decent enough for the 2hrs of trade. We will only get to know if it was the right decision or not when we run the backtest.
Intraday Algos run via AlgoTest on Kotak
Webhooks automation run via TradingView on Dhan