PostMortem on BankNifty Today & Analysis of 27 Mar 2023
There are few important aspects to the price action today. We stuck to a small range today - it would have been good for intraday straddlers & short iron-fly, iron-condor strategy deployers.
So we opened inline at 39484, many would argue that it was a gap up. But i wouldnt say that because of the price action from the previous session.
As soon as we hit the last session's swing low, we got a bounce of 270 pts, but this did not sustain and we fell back to the same low point.
We had a second bounce of 268pts between 11.30 to 12.45 & as expected this did not sustain as well. and fell back to the low point of the day again.
Now between 13.25 to 14.35 we had the 3rd bounce of 383 pts & again we could not breakthrough the 39742 level. And we fell back to the low point of the day.
The important aspect in today's price action is we had 4 tests of 39300 levels today (see cyan markers from chart). And none of them gave away.
I am not saying that its a bullish sign, but its an area of importance. Either the volume traded today might be too low to create any volatility to break this zone or we may need some external triggers to break down.
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On
BANKNIFTY
minds i made 3 posts today
"$BANKNIFTY we need a break of support 38690 for strong bearish momentum" at 10.14
"$BANKNIFTY option prices are not providing clear direction" at 13.39
"$BANKNIFTY needs to take out 39742 to go bullish" at 14.39
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15mts TF is looking at a sideways movement, i was hoping was a retest of 38690 levels today - but that did not happen. Instead the 39300 level came to rescue. I am seriously considering to mark a new SR zone at 39310.
to view all 10 charts in today's discussion visit viswaram. com
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1hr TF is still bearish to me, agree its taking some time for the new leg to form. If there are no fundamental news triggers i am expecting the 38690 levels to be taken out this week itself. Keeping my fingers crossed
So we opened inline at 39484, many would argue that it was a gap up. But i wouldnt say that because of the price action from the previous session.
As soon as we hit the last session's swing low, we got a bounce of 270 pts, but this did not sustain and we fell back to the same low point.
We had a second bounce of 268pts between 11.30 to 12.45 & as expected this did not sustain as well. and fell back to the low point of the day again.
Now between 13.25 to 14.35 we had the 3rd bounce of 383 pts & again we could not breakthrough the 39742 level. And we fell back to the low point of the day.
The important aspect in today's price action is we had 4 tests of 39300 levels today (see cyan markers from chart). And none of them gave away.
I am not saying that its a bullish sign, but its an area of importance. Either the volume traded today might be too low to create any volatility to break this zone or we may need some external triggers to break down.
---
On
BANKNIFTY
minds i made 3 posts today "$BANKNIFTY we need a break of support 38690 for strong bearish momentum" at 10.14
"$BANKNIFTY option prices are not providing clear direction" at 13.39
"$BANKNIFTY needs to take out 39742 to go bullish" at 14.39
---
15mts TF is looking at a sideways movement, i was hoping was a retest of 38690 levels today - but that did not happen. Instead the 39300 level came to rescue. I am seriously considering to mark a new SR zone at 39310.
to view all 10 charts in today's discussion visit viswaram. com
---
1hr TF is still bearish to me, agree its taking some time for the new leg to form. If there are no fundamental news triggers i am expecting the 38690 levels to be taken out this week itself. Keeping my fingers crossed
