05 Jul 2024 — Nifty up 315pts, BankNifty up 318 + PostMortem Analysis & Weekly Report.
Something magical happened this week, my article on “Goal setting, Mutual Funds” was published in Malayala Manorama Sampadyam. It is a monthly journal in my native language “Malayalam” that has over 2,50,000+ subscribers. Feeling blessed.
Nifty Stance Bullish ⬆️
Nifty’s dream run continues, unchecked and unchallenged. Every other day a heavyweight supports Nifty, one day it will be HDFC Bank, the other day it could be RELIANCE, and then on the 3rd day, it may be ICICI Bank. Somehow or the other the fire is still burning..
If you look at the 16mts chart, what we notice is an almost 45-degree strong upward momentum further disrupted by a mega gap up on 3rd July, a further gap up on the 4th, and then a gap down today. You may not like it when I say, it resembles an evening star pattern.
Well, no one really knows when the rally will end, till then we would stay bullish and look for long-only opportunities. Meanwhile, I fine-tuned a ratio spread algo strategy on Nifty50, that closely mirrors the index’s movement. I have not taken it live, it’s still in forward test mode on AlgoTest.
BankNifty Stance Bullish ⬆️
When the elephant dances, the ground will shake, and that is what happened when HDFC Bank moved like crazy on the 3rd and 5th of July. Despite the mega gap up or gap down moves, the index did not breakout or breakdown post that and that was very beneficial for the non-directional strategies like short straddles.
The evening star pattern is much more visible on the BankNifty index, if we fall below 51955, it would not be a bad idea to go neutral. BN showed much more maturity today, especially in the last 90 minutes- compare that with Nifty which moved like a penny stock in the closing hour.
Our stance is still bullish, meanwhile we made some changes to the non-directional algo after what happened last week. I brought down the re-entry count and ensured a tighter stop-loss.
Intraday Algos run via AlgoTest on Kotak
Webhooks automation run via TradingView on Dhan