Bank nifty made some interesting price action today. It opened at 38784 above the support line of 38698 went down all the way to 38606 and closed the first candle above this support.
Well that was the low for the entire day - the support level was tested once more between 10.45 to 11.10 after which BN steadily rallied higher. Personally i felt BN will trade below 38698 the entire day - but that never happened.
The reason i was bearish was because of the close we had yesterday, decisive breach of the support line. Meanwhile from 13.30 to close today BN showed immense strength & kept moving upwards with no pullback.
Today’s price action has not taken out the swing high of yesterday - so the chances are the move could be fake as well. Esp as positioning for the expiry tomorrow. Remember the last few expiries we had island days - the price action no where close to the existing trend or chart.
Nifty50 is still below the channel top of the decade trend line. US Inflation data is a big macro & hope that impacts the trend in our country also.
I dont know how many analysts are fearful, but i am very scared when our markets are not inline with the global trends. If ours were lower - it wouldnt have been an issue. But ours are way higher - keeping the risk of a sudden drop open.
5mts TF showing range bound trade
1hr TF also showing range bound trade. Either the resistance or support has to be broken for the trend to begin.
Bank nifty important support and resistance lines
s1:38698, s2: 37946
r1: 39326, r2: 39739
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Well that was the low for the entire day - the support level was tested once more between 10.45 to 11.10 after which BN steadily rallied higher. Personally i felt BN will trade below 38698 the entire day - but that never happened.
The reason i was bearish was because of the close we had yesterday, decisive breach of the support line. Meanwhile from 13.30 to close today BN showed immense strength & kept moving upwards with no pullback.
Today’s price action has not taken out the swing high of yesterday - so the chances are the move could be fake as well. Esp as positioning for the expiry tomorrow. Remember the last few expiries we had island days - the price action no where close to the existing trend or chart.
Nifty50 is still below the channel top of the decade trend line. US Inflation data is a big macro & hope that impacts the trend in our country also.
I dont know how many analysts are fearful, but i am very scared when our markets are not inline with the global trends. If ours were lower - it wouldnt have been an issue. But ours are way higher - keeping the risk of a sudden drop open.
5mts TF showing range bound trade
1hr TF also showing range bound trade. Either the resistance or support has to be broken for the trend to begin.
Bank nifty important support and resistance lines
s1:38698, s2: 37946
r1: 39326, r2: 39739
Thanks for reading Viswaram Finance! Subscribe for free to receive new posts and support my work.