07 Jul '23 Post Mortem on BankNifty - Gap down on monday?
Banknifty was diverging with Nifty50 early in the day. When N50 was rallying till 10AM, BN was just holding ground unable to go up. The fall that followed was when both of them had correlation.
BN was showing weakness yesterday also, esp in the 14.05 to 15.10 move yesterday. Today BN after opening gap down could not even climb back to yesterday's close level. 3 strong red candles at 10.40 to 10.50 really helped the bears today.
But there was a frustrating period where BN was not going down or up - just staying flat. i.e from 10.55 to 14.10. In fact the recovery from 14.05 to 14.55 of 192pts gave some additional momentum to push down the prices, we lost 242.95pts due to this.
1hr TF
Yesterday we discussed about a empty band formed due to the gap up on 03 Jul. The first priority for the bulls would be to defend the lower end of this band to push the prices up. Similarly if the bears can break the lower band with a gap down open on Monday, it will give them immense momentum.
BN was showing weakness yesterday also, esp in the 14.05 to 15.10 move yesterday. Today BN after opening gap down could not even climb back to yesterday's close level. 3 strong red candles at 10.40 to 10.50 really helped the bears today.
But there was a frustrating period where BN was not going down or up - just staying flat. i.e from 10.55 to 14.10. In fact the recovery from 14.05 to 14.55 of 192pts gave some additional momentum to push down the prices, we lost 242.95pts due to this.
1hr TF
Yesterday we discussed about a empty band formed due to the gap up on 03 Jul. The first priority for the bulls would be to defend the lower end of this band to push the prices up. Similarly if the bears can break the lower band with a gap down open on Monday, it will give them immense momentum.
