23 Aug 2024 — Bullish Stance on Nifty worked out, But Neutral stance on BankNifty proved wrong |…
Nifty Stance Bullish ⬆️
Last week I said, Nifty may not go above 24800 by the 22nd and we ended Thursday 11 points above the target.
Over the week we went up 292pts ~ 1.19% and the ATH of 25078 is now looking pretty easy to conquer. For the current expiry, I expect Nifty to stay below 25150 ie by 29th August.
This week’s Monday and Tuesdays were with gap-up open indicating strong after-market hours news/event impact. Once we got past 24690, Nifty immediately converted the resistance into support. The moves on Wednesday were according to this support level.
On Thursday we had again a good gap up and then the reluctance by Nifty to hold on to those gains. Finally, on Friday we just kept the lead and consolidated.
My stance remains bullish unless we get a news impact, I do not see any technical bearishness otherwise.
BankNifty Stance Neutral ➡️
Despite BN moving up 587pts ~ 1.17% this week, I am not intending to change the stance to bullish yet. The last time I checked, I preferred a close above 51400 to go long.
We had a flattish Monday, followed by a highly volatile Tuesday. In fact, the moves on Tuesday would have hurt the algo traders pretty dearly, the reason I am sure is because I was one of them.
Wednesday we had a normal and non-directional day, but the last 1 hour of trade was pretty unusual. We went up 366pts in the last 1 hour, giving some early clues that Thursday may be a green day. Friday was again consolidation just like Nifty.
From the Algo perspective, the returns were quite low this week for me even for the good nontrending days. I assume it could be due to the lower premiums and hence the proportionately lower decay.
Wish to start trades on Monday with a neutral stance and then go long if we go above 51400.
Intraday Algos run via AlgoTest on Kotak
Webhooks automation run via TradingView on Dhan
https://viswaram.com/16-aug-2024-change-in-stance-to-bullish-nifty-up-174pts-banknifty-flat-postmortem-weekly-e62baaf35796https://viswaram.com/16-aug-2024-change-in-stance-to-bullish-nifty-up-174pts-banknifty-flat-postmortem-weekly-e62baaf35796