Postmortem on #BankNifty - 20 SEP 2022
When the S&P does a relief rally for one day, our bank nifty thinks its a reversal and shoots up. Look at what happened today, BN opened gap up at 41304 up 400+ pts and then takes out the resistance in the first candle itself. Look at the strength today, the resistance level was never tested, the gap never tested.
The bank nifty continued to show the strength till 12.30, only after 14.30 did it give up some gains. But from the price action displayed bank nifty does not want to go down, and it does not have enough strength to break away from this ATH level.
A section or a group of financial institution is skewing and prepping the bank nifty to keep doing the impossible - chart contrary to the global direction. I strongly do not thing the foreign institutional investors would invest in India by taking out money from their home market. So this activity may be done by domestic institution. Or it may be a real structural change and more new people are entering the market and investing at these all time highs.
Eventhough i am an optimist generally, when it comes to trading i am a hardcore pessimist. I expect bad things to happen all the time, so this behavior by Nifty50 and NiftyBank is really messing with my thought process! If its an actual structural change then the #USDINR should have depreciated, the rupee should have gained value against all the European, American & Chinese currencies. If India is the world's best investment destination right now - then the foreigners should have accumulated rupee - which is not happening.
So these moves are more or less to trap the individual investors, retail traders as most of them will not have hedge to protect their downside.
TradingView Chart
5mts charts of previous days - does not show a reversal yet.
TradingView Chart
1hr TF shows continuation in upmove esp after today's strength.
TradingView Chart
Bank nifty important support and resistance lines
s1:41312, s2: 40689
r1: no resistance level, at ATH
more ideas at viswaram.com
no predictions, no trade recommendations !
The bank nifty continued to show the strength till 12.30, only after 14.30 did it give up some gains. But from the price action displayed bank nifty does not want to go down, and it does not have enough strength to break away from this ATH level.
A section or a group of financial institution is skewing and prepping the bank nifty to keep doing the impossible - chart contrary to the global direction. I strongly do not thing the foreign institutional investors would invest in India by taking out money from their home market. So this activity may be done by domestic institution. Or it may be a real structural change and more new people are entering the market and investing at these all time highs.
Eventhough i am an optimist generally, when it comes to trading i am a hardcore pessimist. I expect bad things to happen all the time, so this behavior by Nifty50 and NiftyBank is really messing with my thought process! If its an actual structural change then the #USDINR should have depreciated, the rupee should have gained value against all the European, American & Chinese currencies. If India is the world's best investment destination right now - then the foreigners should have accumulated rupee - which is not happening.
So these moves are more or less to trap the individual investors, retail traders as most of them will not have hedge to protect their downside.
TradingView Chart
5mts charts of previous days - does not show a reversal yet.
TradingView Chart
1hr TF shows continuation in upmove esp after today's strength.
TradingView Chart
Bank nifty important support and resistance lines
s1:41312, s2: 40689
r1: no resistance level, at ATH
more ideas at viswaram.com
no predictions, no trade recommendations !
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