Nifty & BankNifty Analysis — 08 May 2024 — Nifty defends 22295, but not going neutral yet —…
Nifty Analysis — Stance Bearish⬇️
Recap from yesterday: “Also in the 63mts TF we did not really break it, if you are a conservative trader, it is a good idea to wait for one full candle to form below 22295.”
Today the entire action was around the 22295 levels. The open was a gap down and N50 spent time till 11.47 underwater. The 22295 level was broken by 12.07 and we went up 183pts ~ 0.83% from the intraday low to the intraday high.
The upside was limited and we started falling. Two RED candles i.e. 13.35 & 13.47 stood out which brought N50 back below water. On a closing basis, N50 finished the day above 22295 at 22302. Ideally, I should change the stance from bearish to neutral, but let me give the benefit of the doubt to the Bears for one more day.
We did not get a full candle below 22295 on the higher TF. If we do not break 22295 in tomorrow’s session, I may be inclined to change the stance back to neutral.
Nifty algos made 15052 INR today. MTM went into losses between 12.22 to 13.00 — but the system recovered well in the later part of the day.
BankNifty Analysis — Stance Bearish⬇️
BN was unable to defend the 48115 support resistance today and it was an advantage Bears. The overall price action was neutral and that might be related to the expiry trades. There were a couple of instances where BN moved 100+ pts in minutes — this really had an impact on the algo trades, but happy that major damage was not done.
Both BN and NiftyIT closed the day in the RED, whereas Nifty50 ended the day flat. If IT is also going the banks’ way, we might have further downsides.
For tomorrow, I wish to hold on to the Bearish view and then go neutral if we spend considerable time above 48101.
The algos did pretty well today and ended up generating a whopping profit of 54085 INR.
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