Nifty & BankNifty Analysis — 03 Apr 2024 — The Bulls have not given up yet, there is still hope…
Nifty Analysis — Stance Bullish ⬆️
Recap from yesterday: “We wish to maintain the bullish stance for tomorrow as well, but we will be a bit cautious if Nifty falls below 22393 levels. A stance revision may not be even required till 22295 is broken”
As we feared yesterday, we got the drop below 22393 levels but it did not even test the 22295 to mandate a stance change. The intraday low was 22346 from which we recovered 174 points ~ 0.78% to 22520 levels. From there we had a sharp correction of about 96 points ~ 0.43%. This correction would be the excess or the profit booking from those “longs” entered near the swing lows. The final closing was perfectly flat at 22434 levels. This can be considered a big achievement for the Bulls as the opening was pretty bad.
I hope we are not making a double top (M pattern) on the 63mts time frame. If the pattern holds then all the efforts taken by the BankNifty index will go down the drain. This is because if Nifty50 reverses, there is no way BankNifty can maintain the positive momentum. For tomorrow we wish to start with the bullish stance itself and go neutral if the 22295 levels are not holding.
BankNifty Analysis — Stance Bullish ⬆️
BankNifty also defended its current levels very beautifully today. The open was pretty bad as we dropped to 47278 levels by 09.27. If you observe the charts you can quickly understand that it was well below the support and that should have triggered a further fall if the Bears had an upper hand. Unfortunately, the trend is still in favor of the Bulls as the recovery was intense. A look at the 10.11 candle that cut through the 47465 resistance will give all the proof you require. BN ended up recovering 398 points from the lows and unlike Nifty we closed near the highs of the day.
If you ask me, the trend is still favoring the bulls 5 out of the 6 candles today are in GREEN with the odd RED candle being a doji. It might be very unfortunate if Nifty50 has plans to reverse now as BN looks quite ready to break out. We all know how much energy will unwind when N50 and BN are aligned in the same direction. For the last 3 sessions, we have both of the indices upward looking but with no followthrough action. Let us hope tomorrow is that day wherein we expect a directional move.
Algo Trading
Our algo trades ended today with a gain of Rs44262, this is the 3rd consecutive day where I had to exit the trades prematurely as the hourly profit targets were hit.
Webhooks automation run via TradingView on Dhan
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