Nifty & BankNifty Analysis — 19 Apr 2024–Unseen 402pts momentum, not bullish though — PostMortem Series Q1 FY2024–25
Nifty Analysis — Stance Bearish⬇️
Recap from yesterday: 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.
Unseen momentum on Nifty50 today, we woke up to the bad news that Israel has launched counter strike on Iran, and Gifty (Global Nifty futures) were trading 400 points lower. The news and Twitter feed were not looking good and immediately I felt it was wise not to run my non-directional algo. That proved to be the right decision as my backtests showed losses of 97000 if I had run the Algo.
Nifty opened below the support of 21913, hit an intraday low of 21777, and then started recovering. Between 11.27 to 12.11, N50 spent its time near the 21913 SR zone. Once it broke the resistance, it immediately went to the next SR of 22051. Between 12.51 to 13.47, N50 spent its time at 22051 before breaking out. N50 went ahead and hit an intraday high of 22179 before cooling off to close at 22149.
When was the last time you saw N50 rally 402pts that too from poor global macros? I strongly think it was an intense short covering that fueled this rally and hence does not wish to alter my bearish stance. If we get past 22295 on Monday or Tuesday, I would change the stance to neutral.
BankNifty Analysis — Stance Bearish⬇️
BankNifty was more dramatic versus N50, it went ahead and rallied 1093pts ~ 2.35% and ended up taking out the crucial resistance of 47465. The momentum favors a stance change to neutral, but I would like to wait for one more day for confirmation.
The lowest point of the day was hit in the opening candle and the highest point in the last candle — so much drama. And never in the rally today there was an attempt to break the upward direction. Unlike N50, hard to believe that it was short covering here — it looks like more of a long build-up.
Again luckily did not switch on the Algos today, or else would have lost approximately 60k. 46284 support level was added today, but BN took support at 46592 levels itself. All 6 candles were in GREEN today — unbelievable momentum.
Intraday Algos run via AlgoTest on Kotak
Webhooks automation run via TradingView on Dhan
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