Overnight we had a dip in SPX -1.53%, DJI -1.72%, NDQ -1.22% — seriously i thought we will break down below 41000 level today. Gap down open at 41178 and the first 15mts got me really glued to the screen. For a moment i really thought my 41000/40900 debit spread is going to reward me nicely.
But the 4th and 5th candle shattered my hopes, bank nifty traced back to the resistance and then stayed there till 13.50
4h 15mts BN was around this support/resistance zone of 41311. When i look back i realized bank nifty was gaining strength to break out not break down. Initially i felt the resistance of 41311 is getting rejected — but it was not.
Then we had the beautiful 326pt rally that helped bank nifty hit the next resistance. If there was some more time left may be this would have broken too!
Now i am seriously hurt for all the bears out there, how come our market stays buoyant when the US market sunk in red yesterday. Who is buying? And what makes the Indian stock market so much exciting even at these high valuations?
The 15mts chart is now looking bullish as we took out 3 resistances from 23 March.
1hr TF is yet to turn bullish, as of now its still in the range for 40 days now.
The break out or the break down will have immense strength mainly because of the consolidation that has happened for the last 2 months. As it stands most traders would be biased to look out for break out. I personally would like to wait for the range to be broken decisively before changing my bearish bias.
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