Nifty & BankNifty Analysis — 30 May 2024 — Nifty hits a new ATH and then Starts Reversal — Weekly…
Nifty Stance Bearish ⬇️
Over the last 1 week, Nifty hits a new ATH of 23110 and falls 3% ~ 693pts. On a week-2-week basis, we have only fallen 395pts ~ 1.72%. What is more important is that we have started a nice reversal, what needs to be seen is if we get a stronger fall this time.
On every other occasion, the dip buyers emerged and ensured our indices were continuing the one-way trip i.e. upwards. Usually, every bull run will have a healthy correction, but in our case — we never even had a decent fall.
Yesterday we went short on Nifty and stayed neutral on BankNifty. Quite happy to see those trades went quite well. Nifty went all the way down to 22417 before retracing the support level of 22519 to close above. If we closed below 22519 today — it would have given a lot of confidence to the bears.
Nevertheless, our view still remains bearish for Nifty and neutral for BankNifty. The real momentum should pick up once BN also joins N50 by breaking its support of 48661.
BankNifty Stance Neutral ➡️
BankNifty had an awkward-looking opening today, a decent gap-down, and breaking the 48661 support. The intraday lowest point was the level at which we opened today. More importantly, we retraced the fall and even re-tested the 48947 levels.
Fortunately for the bears, 48947 resistance was not broken, if it had given away — then we would have been forced to go long. Between 14.55 to 15.15 we tested the support levels of 48661 and it was defended again. The final closing is so positive for the banks that I am really worried about how Nifty50 is going to gather momentum for a breakdown.
We might have to break either of the 48661 or 48947 levels tomorrow and be prepared for what is coming next week. I seriously hope we find some bearish momentum soon.
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