5th Dec ’23 — Switching to 63mts time frame- PostMortem on Nifty & BankNifty
Nifty Analysis
5mts chart link — click here
The momentum was pretty strong today also, expectedly — BankNifty had more firepower than Nifty today even though spirited performances by ADANIENT +16.91% ADANIPORTS +15.3% contributed only 0.81% gains for Nifty. NifyIT ended up on the losing side along with the FMCG index. The Adani shareholders would be rejoicing, their patience and commitment have been rewarded with lofty gains.
63mts chart link — click here
From today, I decided to replace the 60mts (1hr) chart with 63mts chart. That is because the 60mts chart gives 6 candles of 1hr and 1 candle of 15mts — so the 7th candle is of one-fourth size. Since the size is ¼ the weightage also has to be 0.25 — but from a visual perspective, we are unable to make out the real impact.
The 63mts chart on the other hand gives 6 candles per day with the 6th candle having 60mts instead of 63. 375 hours of trading means. 6*60 + 1*15 for the hourly timeframe and 5*63 + 1*60 on the 63mts TF.
For tomorrow, I prefer to hold on to my long stance with 20690 as a reversal level. If the uptrend is intact — we hope to see the laggards also catch up with the winners shortly.
BankNifty Analysis
Just like we discussed yesterday, BankNifty outshined Nifty today. But surprisingly FinNifty did not correlate with Banknifty. That is unusual as the major components are the same. A detailed look into these stocks BAJFINANCE, BAJAJFINSV will give you the reason.
5mts chart link — click here
HDFCBANK had a higher pre-open indicative price, the initial gap-up followed by cooling off was attributed to this. ICICIBANK hit a new ATH today. Most of the other bank stocks are hovering around those levels except HDFCBK and KOTAKBK. Even after a minor cool-off between 11.00 to 11.40 — we managed to close today with impressive gains of 580pts ~ 1.25%. The new ATH is 47230.55
63 mts chart link — click here
On the 63mts TF, the island formation is clearly visible today. Yesterday’s strong green candles definitely give BN a psychological advantage to go long. I prefer to stay long with the first level to fall back at 46189.