04 Apr - Nifty - The first candle today came as a shocker!
Nifty Analysis - Stance Bullish ⬆️
Recap from yesterday: “This is because if Nifty50 reverses, there is no way BankNifty can maintain the positive momentum. For tomorrow we wish to start with the bullish stance itself and go neutral if the 22295 levels are not holding.”
Absolutely crazy price action today, we fell a whopping 315 points ~ 1.4% after hitting new all-time highs of 22619. The fall was too furious that it would have taken out all the stop losses of Nifty expiry traders. If that did not, then I am very sure the price action from 10.55 to 13.31 would have. That is because we retraced 276 points ~ 1.24% to go above the swing highs of yesterday. A classic V-shaped pattern, something that is rare on an index like Nifty. If you trade BankNifty, you might have gotten used to it already.
Now take a look at the 63mts chart, and see where the reversal came from ~ 22295 levels. That is the main reason why we said a stance change is required only if 22295 is broken and since we did not do that, we continue to remain bullish. But deep down it got me thinking, what is the reason we had a BIG RED candle in the opening 1 hour? No way it was related to technical analysis. It should be a news or macro economic event-related, maybe we will get to know in the RBI Governor MPC address tomorrow.
Recap from yesterday: “This is because if Nifty50 reverses, there is no way BankNifty can maintain the positive momentum. For tomorrow we wish to start with the bullish stance itself and go neutral if the 22295 levels are not holding.”
Absolutely crazy price action today, we fell a whopping 315 points ~ 1.4% after hitting new all-time highs of 22619. The fall was too furious that it would have taken out all the stop losses of Nifty expiry traders. If that did not, then I am very sure the price action from 10.55 to 13.31 would have. That is because we retraced 276 points ~ 1.24% to go above the swing highs of yesterday. A classic V-shaped pattern, something that is rare on an index like Nifty. If you trade BankNifty, you might have gotten used to it already.
Now take a look at the 63mts chart, and see where the reversal came from ~ 22295 levels. That is the main reason why we said a stance change is required only if 22295 is broken and since we did not do that, we continue to remain bullish. But deep down it got me thinking, what is the reason we had a BIG RED candle in the opening 1 hour? No way it was related to technical analysis. It should be a news or macro economic event-related, maybe we will get to know in the RBI Governor MPC address tomorrow.
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