07 Aug ’23 Post Mortem on Nifty Stance changed to bullish 🐂🐂🐂
On Friday 4th Aug Nifty made a gap up opening and created an island day. We had changed the stance from bearish to neutral. And today nifty managed to build-up momentum on top of what happened on Friday, to me - that’s bullish.
After opening gap, nifty managed to stay above the 19530 level quite strongly. At 09.30 nifty made the low of 19524 and then went back to 19585 level. Imagine the bears could not even push Nifty to the prior day's close values. This was even after not getting real support from banknifty.
From 10.50 to 12.25 Nifty stayed range bound and was not indicating a real directional move as the options data was suggesting low volatility in spite of India VIX shooting 5%. But Nifty managed to get a rally going and by 13.40 we hit the high of the day ~ 19620. Once it broke past the 19600 level - I had to change the stance from neutral to bullish. The major strength for Nifty was the NiftyIT & NiftyPharma sectors.
On the 1hr TF Nifty has managed to reach the bearish trend line, and many may think that my stance change is too early. What I personally feel is, its better to play the long side right now and reverse the stance if we have a rejection from the descending trend line.
After opening gap, nifty managed to stay above the 19530 level quite strongly. At 09.30 nifty made the low of 19524 and then went back to 19585 level. Imagine the bears could not even push Nifty to the prior day's close values. This was even after not getting real support from banknifty.
From 10.50 to 12.25 Nifty stayed range bound and was not indicating a real directional move as the options data was suggesting low volatility in spite of India VIX shooting 5%. But Nifty managed to get a rally going and by 13.40 we hit the high of the day ~ 19620. Once it broke past the 19600 level - I had to change the stance from neutral to bullish. The major strength for Nifty was the NiftyIT & NiftyPharma sectors.
On the 1hr TF Nifty has managed to reach the bearish trend line, and many may think that my stance change is too early. What I personally feel is, its better to play the long side right now and reverse the stance if we have a rejection from the descending trend line.
