Nifty & BankNifty Analysis — 18 Apr 2024–13.23
Nifty Analysis — Stance Bearish⬇️
Recap from yesterday: “For bearish continuation, we need to take out the 22051, whereas for Neutral stance shift, we need to take out 22295.”
We did take out the 22051 support today on the 4mts TF but not before some drama. Initially Nifty was showing strong upside potential knocking the 22295 resistance level. By 12.15, I almost thought we might have to go neutral and kiss good bye to the new Bears.
Fortunately, the 22295 resistance held its ground and proved a safe level for the Bears. Coming to the main event of the day — see the encircled portion. The 13.23 and 13.27 candles. Nifty fell 213 points in 8 minutes (might be a new record). And since we had an expiry today, what it actually did was mess up the premiums of straddles. I lost 1.38L in Nifty today due to this misadventure.
By 14.55 we lost the 22051 support and N50 went on to test 21961. The next major support comes at 21913.
On the higher TF, we wish to maintain the bearish stance even though we did not get a 63mts closing candle below 22051. I am hoping that we may get one in the forenoon session tomorrow. The last 3 candles were strong RED and the bodies fit right between the 22295 and 22051 SR zones.
The losses in Algo trades were 1.38L, mostly due to slippages between 13.23 to 13.28. However smartly you set the programs, the orders will not fire as fast as the underlying moves. The delay is enough to get mispricings and slippages. Quite relieved to have saved close to 70k from the max loss value.
BankNifty Analysis — Stance Bearish⬇️
“The power of a strong support/resistance zone will help you in your technical analysis” — Anonymous.
See what happened today, BN started strong and was keeping its head above the 47465 support for a long time. Between 10.19 to 10.31, there was an attempt to break this SR, but it failed. BN reclaimed the 47700 levels and was coasting perfectly when the flash crash happened. Between 13.23 to 13.27, BN gave away 557pts ~ 1.17% also ensuring the SR breach.
By 13.39, the breach was confirmed and BN continued its downward moves. A session low of 46982 was hit at 15.15 post which we had a 240+ pts recovery.
The last 4 candles on the 63mts TF are all red and the support of 47465 has yielded. I am yet to mark the next support level, which I will do by tomorrow. I wish to hold on to my bearish view for tomorrow as well.
The Algo on BN was in good shape till the 13.23 impact took away the gains. Ended the day with a loss of 40,724.
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