We had a dramatic performance by Banknifty today even after a higher than expected inflation of 6.52%. Although we had 2 sharp moves, none of the support or resistance was broken — which means we still have no clue on the direction.
Bank nifty opened at 41410 made a low at 9.47 just 0.51% ~ 212pts drop. Although this level does not have any major support or resistance — bank nifty was not falling.
There was a sideways movement till 11.25 after which it started picking up direction. I am not quite sure what gave away suddenly — was it the more than expected profit report from Adani enterprise that helped the bank's jump?
There was an intraday rally of 1.13% ~ 465pts from the stable level at 11.30 to 14.35. There was a near vertical move from 13.45 to 14.10 — all green candles.
What this did to the option prices was that the CE shorts got covered and fresh PE shorts were written. The surge in options volume shows that. I cannot really say that the 41624 resistance was taken out as the final close was at 41617, still this sudden surge in prices brought about a sentiment change from negative to neutral.
15mts chart is still showing sideways ie neutral, today we ran out of time to break the resistance level. So if tomorrow we start gap-up then we might see fresh longs added. 41624 resistance has not given away in the last 5 attempts.
1hr TF is still not bullish or neutral, it still looks bearish to me. If the resistance gets taken out — then i too will look out for bullish trades esp because the expiry is coming up in 2 days.
Almost all banks had a breakout trade today, the swing range from LOD to HOD marked.
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HDFCBk had a swing of 1.1% from LOD to HOD — not that much to comment about, but this bank was staying & took out the swing high of 6th Feb
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ICICI had a swing of 1.68% of this a single candle at 13.55 brought in 0.41%.
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SBI was below water today and the surge not only helped it close in green, but pulled bank nifty's gain to 0.9%. There was a swing of 2.58%
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Axis had a perfect V shaped chart pattern when yesterday's price action is also considered. Almost a 2% intraday swing & a near vertical trade from 13.15 to 13.55.
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Kotak was flat today
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IndusInd dipped into red early in the day & then bounced back to close in green.
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