PostMortem on BankNifty Today & Analysis of 24 JAN 2023
Yesterday we started discussing on the habit of
BANKNIFTY
taking out the support & resistance via gaps. Thats what happened today also. We opened gap up at 42994 above the resistance level of 42888.
This was the same resistance level that had a breakout failure yesterday, so today we took that out in open. The 09.30 candle was pretty strong and i almost thought we may have a breakout rally, but it was fake. And bank nifty started falling gradually.
The chart may show that the fall was big, but it wasnt. A 0.81% drop from HOD to 42736 at 12.00. Then a brief flattish move and the 2nd leg start at 12.55 to 13.55 a fall of 0.48%.
Bank nifty turned even before the support level of 42573. So finally we ended the day at a level much closer to yesterday's close.
Today's price action would also have taken into consideration the FINNIFTY expiry - i couldnt really make that out correctly because we have the bank nifty expiry tomorrow. Usually when there is a gap of 1 day in between these 2 expiries its quite simple to find out if there are specific positions taken just to create a fake move & mint money.
If we look at the 15mts chart, the gaps are helping bank nifty to scale upwards, so there is a slight positive bias.
For me the 1hr TF looks like the cup & handle wherein the handle came first. Chart in general is not giving us a directional bias as the support & resistance zones are quite active.
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Among the bank nifty components:
HDFCBANK
had another up day of which the majority of gains coming in the opening 2 candles. This pattern has now repeated for the last 3 days. 7.68% rise from the low on the QoQ results day
ICICIBANK
ended the day near the flat line but the price action was largely negative, mostly because the opening was gap up & the chart pattern played out that way. Only for a brief period of time ICICI went below water but the moves would have prompted a lot of traders to go short. A 1.47% traded range b/w HOD to LOD
SBIN
had a good bearish chart pattern today. Opening was gap up but from there it was a steady single fall with almost nil pullback until 13.55. A 1.9% trade range today
AXISBANK
was reacting to the QoQ results, it would have gone down due to positioning or profit taking as the results were quite good. The opening candle had a volume of 3.92M. A trade range of 3.33% which was hit in a single leg by 11.15.
KOTAKBANK
also had a bearish day today, mostly in 1 leg and then a brief pull back at 14.05. The trade range was 2.46% much amplified due to the gap up opening.
INDUSINDBK
held its ground today, perfectly taking support at the flat line. This same zone has now provided support for the last 3 days which is quite interesting.
To view the 4 charts discussed today, contact @viswaram
BANKNIFTY
taking out the support & resistance via gaps. Thats what happened today also. We opened gap up at 42994 above the resistance level of 42888. This was the same resistance level that had a breakout failure yesterday, so today we took that out in open. The 09.30 candle was pretty strong and i almost thought we may have a breakout rally, but it was fake. And bank nifty started falling gradually.
The chart may show that the fall was big, but it wasnt. A 0.81% drop from HOD to 42736 at 12.00. Then a brief flattish move and the 2nd leg start at 12.55 to 13.55 a fall of 0.48%.
Bank nifty turned even before the support level of 42573. So finally we ended the day at a level much closer to yesterday's close.
Today's price action would also have taken into consideration the FINNIFTY expiry - i couldnt really make that out correctly because we have the bank nifty expiry tomorrow. Usually when there is a gap of 1 day in between these 2 expiries its quite simple to find out if there are specific positions taken just to create a fake move & mint money.
If we look at the 15mts chart, the gaps are helping bank nifty to scale upwards, so there is a slight positive bias.
For me the 1hr TF looks like the cup & handle wherein the handle came first. Chart in general is not giving us a directional bias as the support & resistance zones are quite active.
---
Among the bank nifty components:
HDFCBANK
had another up day of which the majority of gains coming in the opening 2 candles. This pattern has now repeated for the last 3 days. 7.68% rise from the low on the QoQ results day
ICICIBANK
ended the day near the flat line but the price action was largely negative, mostly because the opening was gap up & the chart pattern played out that way. Only for a brief period of time ICICI went below water but the moves would have prompted a lot of traders to go short. A 1.47% traded range b/w HOD to LOD
SBIN
had a good bearish chart pattern today. Opening was gap up but from there it was a steady single fall with almost nil pullback until 13.55. A 1.9% trade range today
AXISBANK
was reacting to the QoQ results, it would have gone down due to positioning or profit taking as the results were quite good. The opening candle had a volume of 3.92M. A trade range of 3.33% which was hit in a single leg by 11.15.
KOTAKBANK
also had a bearish day today, mostly in 1 leg and then a brief pull back at 14.05. The trade range was 2.46% much amplified due to the gap up opening.
INDUSINDBK
held its ground today, perfectly taking support at the flat line. This same zone has now provided support for the last 3 days which is quite interesting. To view the 4 charts discussed today, contact @viswaram
