Postmortem on #BankNifty - 26 SEP 2022BankNifty opened gap down at 39027 breaking the support level of 39327. Tried to recover in the 1st and 3rd candle but the selling pressure was so heavy that it couldnt keep up.
What happened from 9.25 to 11.05 was strong selling that even resulted in the 2nd level of support being taken out.
This is the 2nd time that BN is taking out 2 support levels in the same day, which really talks about the situation we are in.
From 11.10 to 13.10 BN made a good recovery breaking through the new resistance line of 38698, for a moment this recovery looked more promising than the first 15mts.
The level of shorting was very much evident with the volume of OTM CE traded today. This could be the reason that the pullback was dozed off at 13.15 and also at 14.25
The final closing was just below the support line, as pointed out BN has taken out 2 support lines today which should be an event to look for this week.
The 5mts TF for the previous days - shows bearishness.
TradingView Chart
1hr TF starting to show the bearishness now, esp when the session had a good gap down. remember what i said with the 38700 support level on 23rd - click here
TradingView Chart
Bank nifty important support and resistance lines
s1:37946, s2: 37247
r1: 38698, r2: 39326
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