6th Nov ’23 - Show of strength today - Nifty PostMortem
Nifty Analysis
Recap from yesterday: “On the 1hr TF, Nifty has made an odd-looking W pattern, technically its a bullish sign but we need confirmation of the same by taking out the 19310 resistance soon.”
A look at the chart will make you a believer in technical analysis. We required a gap-up to go past the 19310 because bulls could not win over the bears during trading hours - you could see that on the 2nd and 3rd Nov - read here. Once you have a gap-up, the dynamics change and the bears cede control quickly.
We tested the 19310 support twice, the 1st candle as well as the 11.05 candle. Since it was a rejection - the only way Nifty could go was up. Once BankNifty also started participating, the pace picked up by the afternoon. We did not test the next resistance of 19446 - maybe we will have another gap-up tomorrow at those levels.
This is not the first time Nifty has jumped levels via gap-ups. It has become highly predictable these days. When the big boys do a gap-up, the poor retail trader will have to run for cover. A short covering will further fuel the fire. For tomorrow, I wish to maintain the bullish stance with the first target of 19446 and then 19576. If we are going down, the first level to watch will be 19310.
Recap from yesterday: “On the 1hr TF, Nifty has made an odd-looking W pattern, technically its a bullish sign but we need confirmation of the same by taking out the 19310 resistance soon.”
A look at the chart will make you a believer in technical analysis. We required a gap-up to go past the 19310 because bulls could not win over the bears during trading hours - you could see that on the 2nd and 3rd Nov - read here. Once you have a gap-up, the dynamics change and the bears cede control quickly.
We tested the 19310 support twice, the 1st candle as well as the 11.05 candle. Since it was a rejection - the only way Nifty could go was up. Once BankNifty also started participating, the pace picked up by the afternoon. We did not test the next resistance of 19446 - maybe we will have another gap-up tomorrow at those levels.
This is not the first time Nifty has jumped levels via gap-ups. It has become highly predictable these days. When the big boys do a gap-up, the poor retail trader will have to run for cover. A short covering will further fuel the fire. For tomorrow, I wish to maintain the bullish stance with the first target of 19446 and then 19576. If we are going down, the first level to watch will be 19310.
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