24th Nov ’23 — Another Flat Day! — PostMortem on Nifty & BankNifty
Nifty Analysis
5mts chart link — click here
The much-awaited 19875 breakout did not come today, looks like we need to wait till Tuesday to find out as Monday is a holiday. Due to the additional holiday in between combined with the lack of directional intent today, the options premiums were already dead. Bankex and MidCPSelect also had expiry today along with Sensex — this again would have diverted the focus & volume from mainline Nifty and BankNifty.
The only good thing that happened today was Nifty’s show of strength at the 19776 support level. Between 13.05 to 13.40 Nifty spent its time around this SR area but thankfully did not break down.
5mts chart link — click here
The main reason for this was NiftyIT, it gave up 678pts ~ 2.08% in the last 2 days. But it does not really mean bad news for Nifty50, as long as BankNifty can cover up for the lost ground — the hope can still be kept alive.
1hr chart link — click here
On the 1hr TF, I would still like to continue with my neutral stance. Only if 19875 gets taken out, we can hope for some followthrough on the upside.
BankNifty Analysis
BankNifty had a positive-looking chart today, it was kind of obvious from the optimism it showed in the last 2 days. The first thing it did today morning was to take support from the 43566 area i.e. between 09.45 to 10.05
5mts chart link — click here
At 10.40 it had a strong green candle and it looked like it was going for the next resistance area, but that momentum was cut short. Between 13.00 and 13.15 we started falling again and luckily we did not reach the SR area of 43566 to reverse. The recovery from 13.15 to close was decent enough and we gained 216pts ~ 0.5%. The main factor that kept Nifty neutral today was the outperformance by banks today, most of them would not have realized that NiftyIT lost almost a percent today.
1hr chart link — click here
Looking at the 1hr TF, I am still inclined to go neutral unless we take out the 44063 resistance. To go bearish, 43253 has to be broken — in between we have 2 more support levels.