BANKNIFTY - UNDERSTANDING CHARTS (1ST OCTOBER & 5TH OCTOBER)

Looking back at the charts give huge context and meaning for the next trading sessions. This is a small series of charts I want to publish on a weekly basis looking back in the last week trading session of index - specifically Bank Nifty.

From the previous chart I had posted regarding looking back at Bank Nifty in the last three months, we can get the overall idea about the market position in the last three months where we have seen sideways to breakout and huge selloff.

1st October 2020 - Thursday - EXPIRY DAY

• BREAKOUT FROM BEARISH TRENDLINE - BREAKOUT HAS OCCURED IN THE PREVIOUS TRADING SESSION
  
• HUGE VOLUME SEEN IN THE MARKET OPEN, FIRST CANDLE GAP IS MORE THAN 1%
  
• DURING THE DAY, ACCUMULATION CAN BE SEEN IN THE MARKET, WHICH IS A SETUP FOR A BREAKOUT
  
• 2PM BREAKOUT GIVEN - BULLISH
  

5th October 2020 - Monday

• MARKETS RESUMED ON MONDAY, FRIDAY TRADING SESSION WAS HOLIDAY (2nd October).
  
• BULLISH MOMENT CONTINUED FROM THE PREVIOUS SESSION WITH MARKET OPEN.
  
• HUGE VOLUME SEEN IN FIRST CANDLE.
  
• MUTLIPLE REJECTION ON UPSIDE, SELLERS EVENUTALLY WON.
  
• PROFIT BOOKING SEEN IN BANK NIFTY, STRONG SUPPORT WAS SHOWN IN PREVIOUS MARKET CLOSE.
  
• SMALL BOUNCE BACK FROM SUPPORT.
  
• SIDEWAYS MARKET FIRST 2HR & LAST HOUR - CONSOLIDATION
  
• NO 2PM BREAKOUT.
  

Comment:

6th & 7th October Update