20th Nov ’23 BankNifty PostMortem - Selling hasnt started yet 🐻
BankNifty Analysis
BankNifty started the day on a flat note and was not falling, which came as a surprise because towards the end of Friday’s session the short build-up was pretty intense. The low of the day was hit in the opening 5mts only and did not even go to the support level of 43404. We even had a recovery of 278pts ~ 0.64% by 10.30.
5mts chart link - click here
During this recovery, the options premium on the CE side fell which gave a clue that we may not be having further strong selling today. However, towards the end of the day, we had a similar build-up of short positions as of Friday. This option flow is still suggesting me to go bearish on BankNifty.
1hr chart link - click here
On the 1hr TF, BankNifty showed no interest in getting back into the ascending channel. I suppose that channel can be removed as it will not make any sense going forward. Seems like its just a support and resistance game for some time now. My first support comes at 43566 and 2nd one at 43404 (unchanged as we did not break any SR today). The main resistance is still at 44063 which looks quite far away. I wish to maintain my bearish stance till 44063 resistance is not taken out.
BankNifty started the day on a flat note and was not falling, which came as a surprise because towards the end of Friday’s session the short build-up was pretty intense. The low of the day was hit in the opening 5mts only and did not even go to the support level of 43404. We even had a recovery of 278pts ~ 0.64% by 10.30.
5mts chart link - click here
During this recovery, the options premium on the CE side fell which gave a clue that we may not be having further strong selling today. However, towards the end of the day, we had a similar build-up of short positions as of Friday. This option flow is still suggesting me to go bearish on BankNifty.
1hr chart link - click here
On the 1hr TF, BankNifty showed no interest in getting back into the ascending channel. I suppose that channel can be removed as it will not make any sense going forward. Seems like its just a support and resistance game for some time now. My first support comes at 43566 and 2nd one at 43404 (unchanged as we did not break any SR today). The main resistance is still at 44063 which looks quite far away. I wish to maintain my bearish stance till 44063 resistance is not taken out.
