PostMortem on BankNifty Today & Analysis of 20 DEC 2022
We had a totally opposite day from yesterday in terms of volatility. First a mega swing downwards and then a beautiful recovery to close at HOD
Bank nifty opened gap down at 43152 much lower than the support region at 43247. The first candle itself it scaled back to this SR region. And in the 2nd candle it formed an interim top before falling quite heavily
There was a fall of 393pts ~ 0.91% between 09.20 to 11.45 mainly on the back of bad global news, related to USDJPY currency pair fall. This fall resulted in the india vix going up more than 9% - but the impact was mostly felt in bank nifty far otm options wherein the premiums spiked almost 150%.
It was quite a good day to sell options because what followed from 11.50 to close was a massive recovery.
stage 1 was more like pull back 11.50 to 13.00 - after which i thought bank nifty will go deeper down. Assuming what was getting formed was a lower high.
Do not really know what the bulls are eating these days as the strength in the uptrend is too strong. Instead of going down, bank nifty crossed the resistance line and closed at the highest point of day much near the prev. close. making sure that a day like today went un noticed in the higher TFs.
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Of the bank nifty components:
HDFC bk was the biggest player that stayed in deep red today. The open was quite scary, but the first candle covered so much ground.
ICICI open was not that gap down but it went down till 11.35, from there the rally was really strong, took out the flat line by 14.55 and final close at 0.36% higher
SBI also went down till 13.55 and the last 90 mts ensured the final close is at flat line.
AXIS bank was continuing from the near term trend, had gone down till 11.35 but after that it started building upside momentum - final close at 0.38% higher
Kotak also stayed in red with the moves be it green or red covering so much ground. Gap down opening but the opening minutes it covered the gap but then started falling. From 13.55 to close there was upside momentum.
IndusInd seemed to go with the previous day's trend. But the action from 14.15 to close was strong and against the trend.
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The reversal in the afternoon session is visible very clearly in the 15mts and also the 1hr TF.
Had today's closing been below the SR level (yellow dotted) line we could have gone short, but now the signals arent clear.
The final hour move could also be a positioning either due to the Finnifty expiry today or a institutional desk purchase - because the green candle looks quite out of the place.
Bank nifty opened gap down at 43152 much lower than the support region at 43247. The first candle itself it scaled back to this SR region. And in the 2nd candle it formed an interim top before falling quite heavily
There was a fall of 393pts ~ 0.91% between 09.20 to 11.45 mainly on the back of bad global news, related to USDJPY currency pair fall. This fall resulted in the india vix going up more than 9% - but the impact was mostly felt in bank nifty far otm options wherein the premiums spiked almost 150%.
It was quite a good day to sell options because what followed from 11.50 to close was a massive recovery.
stage 1 was more like pull back 11.50 to 13.00 - after which i thought bank nifty will go deeper down. Assuming what was getting formed was a lower high.
Do not really know what the bulls are eating these days as the strength in the uptrend is too strong. Instead of going down, bank nifty crossed the resistance line and closed at the highest point of day much near the prev. close. making sure that a day like today went un noticed in the higher TFs.
---
Of the bank nifty components:
HDFC bk was the biggest player that stayed in deep red today. The open was quite scary, but the first candle covered so much ground.
ICICI open was not that gap down but it went down till 11.35, from there the rally was really strong, took out the flat line by 14.55 and final close at 0.36% higher
SBI also went down till 13.55 and the last 90 mts ensured the final close is at flat line.
AXIS bank was continuing from the near term trend, had gone down till 11.35 but after that it started building upside momentum - final close at 0.38% higher
Kotak also stayed in red with the moves be it green or red covering so much ground. Gap down opening but the opening minutes it covered the gap but then started falling. From 13.55 to close there was upside momentum.
IndusInd seemed to go with the previous day's trend. But the action from 14.15 to close was strong and against the trend.
---
The reversal in the afternoon session is visible very clearly in the 15mts and also the 1hr TF.
Had today's closing been below the SR level (yellow dotted) line we could have gone short, but now the signals arent clear.
The final hour move could also be a positioning either due to the Finnifty expiry today or a institutional desk purchase - because the green candle looks quite out of the place.
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