06 Mar ’24 — New All-Time Highs, yet again — are you a Believer now?
Nifty Analysis — Stance Bullish ⬆️
Recap from yesterday: “Nifty managed to pull up and close above 22358 which is not a bad thing at all, but what was worrying is how NiftyIT traded today.”
How many of you really thought we would hit a new ATH today? Even if you happened to read yesterday’s post-mortem report — you might not have gathered enough courage to go long. The markets really took all of us for a ride today. The opening hours it spent below the 22295 support showing a strong intent to fall. NiftyIT was trading with deep cuts and went almost to negative 558 points by 11.39. BankNifty on the other hand started strong and stayed strong and could pivot NiftyIT to go green. Even though the market views all favored us, the positions did not. The underpricing of the call options and the strong short-covering really hurt us. What is more saddening is the low conviction of the CALL short sellers, the moment the market turns — they run for cover. And this running away is fueling further upmove which triggers the next strike’s covering.
The strength of the last 2 GREEN candles requires no special explanation. Right from the support level, it went and took out the all-time highs. Two things were in favor, firstly the strength of Banks and then the massive reversal of NiftyIT. We are maintaining our bullish stance for tomorrow as well, but we are not expecting 22600 to be broken tomorrow.
BankNifty Analysis — Stance Bullish ⬆️
The major move in Banknifty in the opening hour itself. See the encircled region and see how the 47465 support came into play. Support and resistance have the highest weightage in my technical indicators arsenal. If you have been reading my reports — you may agree to it without doubt. The only thing is, you need to draw the horizontal lines carefully.
Two things happened when BN rallied 713pts ~ 1.5% in the opening hours. Firstly it gave so much of positive momentum to Nifty50 that even a laggard like NiftyIT had to reverse course and align with the GREENs. Secondly, it threw our algo positions under the bus. The swift movement ensured whatever MTM loss the positions went into, we were sure that the end was never going to be in green.
Not quite sure if we will take out the ATH tomorrow, but seems like we are going to have another green day tomorrow. As long as the support of 47465 is respected, the Bulls are going to have a nice time.
Algo Trading
Our algo trades ended today with a loss of 19656. The opening hour casting its spell, the MTM loss was almost 65710 at a point, so we are quite thankful for the wonderful recovery we had post that trauma.
Webhooks automation run via TradingView on Dhan