Nifty & BankNifty Analysis — 16 May 2024–Stance upgraded to Bullish, Crazy 377pts intraday rally —…
Nifty Analysis — Stance Bullish ⬆️
Recap from yesterday: “The good thing for the bulls was the fall ended at 10.27, for the remainder of the day we went into a small range bound trade. The final close was flat at -0.08%.”
We started today right at the resistance level of 22295 and then started falling. We went below yesterday’s low and took interim support at 22119 levels. From there the bounce took us to 22295 again by 12.19 and this time the rejection was stronger and it ensured we fell to the next support level of 22051.
What happened then was totally unbelievable, right at that level the rejection ensured we were retracing 377pts ~ 1.71% in 1 hour. Just crazy, unbelievable price action — normally we see that during news/event flows. 13 consecutive green candles, 15 out of 16 candles in green — just magical statistics.
On the 63mts TF, just look at the size of the 63mts candle — simply wow. Our stance is now bullish with the next target being 22519. If we are falling, we need to go below 22295 for a neutral stance and 22051 for a bearish outlook.
The algos were in deep loss today, courtesy of the fast & furious moves in the last 90mts. The forward test algo shows a profit of 2475, but the actual execution was in deep red due to slippages.
BankNifty Analysis — Stance Bullish ⬆️
The stance on BN also revised to bullish not because we took out the resistance, but due to the 707pts ~ 1.5% intraday rally that came right from the support level. Usually, powerful moves like this will have extended legs that could start appearing in days to follow.
We only need to know whether the move came out from a news event or not because if it did, then no amount of technical analysis can codify it. BN has also formed a W pattern showing bullishness.
On the 63mts TF, the final candle of the day almost fills the gap between the support and resistance. Hoping to see follow through tomorrow.
The algos were at a loss today, understandably so because of the wild swings we got today.
Webhooks automation run via TradingView on Dhan
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