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PostMortem on BankNifty Today & Analysis of 26 JUN 2023

NSE:BANKNIFTY   NIFTY Bank Index
BN opened gap up, but right at the opening itself we all anticipated that we are not going to have an up day today. The options flow gave me a bearish bias and was looking for opportunities to enter.

The first swing till 10.50 where we had a drop of 222pts & then a retracement of 113pts looked healthy and almost filling all the checklist for the 2nd leg.
Instead of making a lower low - the 2nd leg made an upmove to take out the retracement high. By this time the options premium was dead - indicating no more uncertainty ahead.
SBIN & ICICIBANK gave ample support to BN today & prevented it from falling. Again the conviction of the bulls were quite strong.

Between 15.00 to 15.05 BN made a quick surge of 105pts and then quickly lost it between 15.10 to 15.15 - might have taken out the stop losses of few option traders today. The way in which PE options reacted made me think the major participants would want BN to go up.
1hr TF

The double bottom W pattern that formed with the bottom at 43404 is still intact. The upmove from 20th Jun to 22nd Jun was pretty weak that did not allow it to go past the resistance zone of 44068.

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