Nifty & BankNifty Analysis — 09 Apr 2024 — A New High, but a sharp fall afterward.
Nifty Analysis — Stance Bullish ⬆️
Nifty hits a new ATH and then falls over 155 points, goes below water, and then closes 23 points lower @ 22642. The new ATH is 22768. The main villain again was the NiftyIT sector which had a -1.59% 566 points intraday fall. Firstly it went up 535 points in the opening 20 minutes and then gave all that away to close flat for the day.
I am sure how bad the option traders are feeling because I am one of them. We now have a highly unpredictable market and swings that take out the stop losses both ways. The best trade sometimes is no trade.
On the 63mts TF, we have 4 consecutive RED candles. 5 out of 6 candles are RED but the reason is that we started the day with a mega gap-up. For tomorrow also we are continuing our bullish view and would like to go neutral if we get a close below 22615. If we fall below 22513, we prefer to go short for the immediate short term.
BankNifty Analysis — Stance Bullish ⬆️
BankNifty does an inverted V pattern today due to which the Algos went negative. Was quite happy that the losses were contained in the end, but what I learned is that sharp rises & falls take out the stop losses at both ends. And what is the end result? We are treading nowhere.
On the higher timeframe, BN looks more bullish than Nifty. Just like we discussed yesterday, only if we take a pause and retrace a few points — we can mark the higher high. Since the 11th is a holiday due to Ramadan, both Nifty and BankNifty will have the expiry tomorrow.
Algo Trading
The trades ended today with a loss of -18294. There is no way the Algos can defend a V or an inverted V shape. The best I could do was firefight the same manually, but I decided otherwise.
Webhooks automation run via TradingView on Dhan
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