Nifty & BankNifty Analysis — 05 Apr 2024 — Nifty was Flat, BN picked up momentum -PostMortem…

Nifty Analysis — Stance Bullish ⬆️

Recap from yesterday: “Now take a look at the 63mts chart, and see where the reversal came from ~ 22295 levels. That is the main reason why we said a stance change is required only if 22295 is broken and since we did not do that, we continue to remain bullish.”

Nifty had no momentum today, but BankNifty had lots of it. Yesterday SPX & NDQ had a real down day and its spillover effects were visible during the opening minutes. We opened gap-down and then slowly recovered from that. There were no abrupt or wild movements for a change. That takes me to the next question, why did we really have a 300+ point fall yesterday? It was not because of RBI MPC, otherwise we would have passed the swing high. How many of you think it could be because of the worsening situation in the Middle East?

Today was an inside day with no real momentum and that does not mean that we are not bullish. We will keep an eye on the Global macros, if the news about the War widening in scope both in Ukraine and Israel is true then it could really kill the optimism. Just before the macros worsen — GOLD prices go up. An escalation of tensions will shoot up the OIL prices as well. At present, we have both.

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BankNifty Analysis — Stance Bullish ⬆️

The line we drew yesterday was more or less right. Banknifty respected the trend line and moved ahead when Nifty was trading flat. RBI MPC outcome expectations were not the reason we had the fall yesterday. I can say that with a high level of certainty because today we went past yesterday’s high. And as soon as we cut through that level an additional boost of 300+ points came in via short-covering or long build-up.

I guess we discussed a higher-high, higher-low formation last week. I just drew that with the green-colored path lines. Can you spot the HH, HL pattern? All this was possible only after the 47465 resistance was breached. Also, notice how the momentum picked up right after the crossing.

The major highlights from the RBI MPC meeting were

1. The Repo rates are unchanged at 6.5%
2. The stance is the withdrawal of accommodation (M3 money supply can be tracked to see if liquidity is getting removed or not)
3. Inflation projected at 4.5% for current FY
4. GDP expected at 7.6% for the current FY

source

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Algo Trading

Our algo trades ended today with a loss of Rs3246, things were cruising quite well when BN picked up momentum in the last 30 to 40mts.

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Intraday Algos run via AlgoTest on Kotak

Webhooks automation run via TradingView on Dhan

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