Indice NIFTY 50Short
4th Oct ’23 - Super recovery in last 90mts - Nifty PostMortem
Nifty Analysis
Recap from yesterday: “The orange support and resistance lines remain the same, the bottom one is @ 19446, top one at 19776. We just completed an M pattern (double top) on the 1hr TF. For tomorrow I continue to remain bearish with the support getting broken in the opening 1hr. Ideally, we should retest the 19310 support if not break it.”
The opening 5mts was quite powerful, quite similar to the one we had yesterday. Interestingly it took out our first support of 19446. We had a follow-through and even hit the low of 19333 but we did not retest nor break the 19310 level.
The main reason for that is the counter move on HDFCBK - which spoiled the party for the bears. Our markets are not alone wherein 2 or 3 stocks can dictate the terms - such is their weightage. Just because of this, the VIX stopped surging and all of a sudden the fallen stocks started getting back on their feet to cover up the lost ground. When news flows - the technical analysis stops working. We will discuss on HDFCBK in the Banknifty expiry section below.
On the 1hr TF, Nifty complied with the double top pattern and showed its vulnerability by breaking the support line. The next support level of 19310 fell short by just 0.1%. If the current momentum holds - then it should be tested and taken out by tomorrow. We also have the expiry tomorrow - which may bring in some added uncertainties.
Recap from yesterday: “The orange support and resistance lines remain the same, the bottom one is @ 19446, top one at 19776. We just completed an M pattern (double top) on the 1hr TF. For tomorrow I continue to remain bearish with the support getting broken in the opening 1hr. Ideally, we should retest the 19310 support if not break it.”
The opening 5mts was quite powerful, quite similar to the one we had yesterday. Interestingly it took out our first support of 19446. We had a follow-through and even hit the low of 19333 but we did not retest nor break the 19310 level.
The main reason for that is the counter move on HDFCBK - which spoiled the party for the bears. Our markets are not alone wherein 2 or 3 stocks can dictate the terms - such is their weightage. Just because of this, the VIX stopped surging and all of a sudden the fallen stocks started getting back on their feet to cover up the lost ground. When news flows - the technical analysis stops working. We will discuss on HDFCBK in the Banknifty expiry section below.
On the 1hr TF, Nifty complied with the double top pattern and showed its vulnerability by breaking the support line. The next support level of 19310 fell short by just 0.1%. If the current momentum holds - then it should be tested and taken out by tomorrow. We also have the expiry tomorrow - which may bring in some added uncertainties.
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