PostMortem on BankNifty Today & Analysis of 22 Mar 2023
Today happened to be a boring day mostly because 
BANKNIFTY stuck to a specific narrow range all day. Usually we have one or two swings which will spike up the options premium,
Yesterday i did mention the possibility that we could expect a fall today if the 2nd half of yesterday's session was resultant of a build-up as part of Finnifty expiry. Since the fall did not happen - i will go with the assumption that the resistance break of 39742 yesterday was not a fake move.
Today's open was gap up at 40036, the HOD was in the opening 5mts itself. After that we came down a little and then stuck to the range 39874–40023 ~ just a 149pt narrow range.
From an options premium perspective, we started the day with very low premiums. Most of the OTM hit the HOD in the opening minutes itself and then the time decay took over as the volatility was dead.
We are awaiting the US Fed interest rate decision today at 23.30 IST - if the rate hike is more than 25bps it should be bearish. Only then we can think of a possibility ofBANKNIFTY breaking the support level of 39742.
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15mts TF showing a temporary consolidation type of pattern between 39742 & 40134. This should ideally break in tomorrow's trade mostly because its weekly expiry.
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1hr TF shows a wider time could be spent between the 39742 to 41629 range before a rally or breakdown. Today's trade being conducted above the crucial support area should give some relief to the bulls.
BANKNIFTY stuck to a specific narrow range all day. Usually we have one or two swings which will spike up the options premium,Yesterday i did mention the possibility that we could expect a fall today if the 2nd half of yesterday's session was resultant of a build-up as part of Finnifty expiry. Since the fall did not happen - i will go with the assumption that the resistance break of 39742 yesterday was not a fake move.
Today's open was gap up at 40036, the HOD was in the opening 5mts itself. After that we came down a little and then stuck to the range 39874–40023 ~ just a 149pt narrow range.
From an options premium perspective, we started the day with very low premiums. Most of the OTM hit the HOD in the opening minutes itself and then the time decay took over as the volatility was dead.
We are awaiting the US Fed interest rate decision today at 23.30 IST - if the rate hike is more than 25bps it should be bearish. Only then we can think of a possibility of
BANKNIFTY breaking the support level of 39742.---
15mts TF showing a temporary consolidation type of pattern between 39742 & 40134. This should ideally break in tomorrow's trade mostly because its weekly expiry.
---
1hr TF shows a wider time could be spent between the 39742 to 41629 range before a rally or breakdown. Today's trade being conducted above the crucial support area should give some relief to the bulls.
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