Nifty & BankNifty Analysis — 13 May 2024–310pts intraday bounce, stance changed to neutral —…
Nifty Analysis — Stance Neutral ➡️
Recap from yesterday: “On the 63mts TF, the bearishness continues. The next target of 21913 is still in our watchlist and if we fall below that — the real action begins.”
The day took me by surprise, not with the inline opening and a 248pts ~ 1.12% downward fall, but the reversal of 310pts ~ 1.42%. The downside was in the cards, if you had read the previous day’s post mortem report — you would have subscribed to those views.
And once again we broke the 21913 support, but gave it away real quick. The recovery was more than fast and furious, it even took out the 22051 resistance level. This nudged me to change the stance from bearish to neutral just for tomorrow.
On the higher time frame, I still cannot believe the reversal came from a technical perspective. Most likely the source seems like a news/event, did not find time to scan it as was busy with my Bday plans.
The Algos shows a profit of 10327 INR, but the actual results were negative, I guess it had to do with some wild swings that we had in between & due to slippage in bid/ask spread.
BankNifty Analysis — Stance Neutral ➡️
Just when we thought the 47465 was getting broken for good, we got a pullback. We fell 527pts ~ 1.11% by 10.39 and then the pull back was a whopping 858pts ~ 1.83%. The final close was almost the midpoint of 48115 and 47465 which prompted me to change the stance to neutral for tomorrow.
The bulk of the heavy lifting came from HDFC Bank in this dramatic reversal by BN. Just when I thought HDFC may break 1425 for another round of collapse — we get a sharp reversal. It rallied an amazing 29pts ~ 2% to change the entire narrative.
On the 63mts TF, BN might try to take out the 48115 resistance tomorrow itself. In case the markets figure out that the reversal was not technical but due to front running, news, or event related — we could see repeat buyers (if news was true) and a sharp fall (if the news was planted and false).
Algos forward test is shown as generating 5764 INR, but the day was in loss today — this must be again due to slippage.
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