viswaram

viswaram

Glad yesterday’s short call worked on bank nifty — read here. The price action formed today is an extension of what was happening yesterday. Apart from the big opening red candle — the rest of the movement is in continuation. Price action of bank nifty index in 5mts chart Speaking of the first candle — it was a story by itself. Gap up opening at 41472 also...

viswaram

Bank nifty ended today’s trade flat with a drop of only 0.04%, but i feel the price action was on the negative side. BN opened gap up at 41552 made a red candle first 5mts, and then rallied all the way to 41656 by 09.50. The change in options premium on the PE side was indicating further upmove — you can check the surge in premiums of far OTM PEs. I was also of...

viswaram

Bank nifty opened gap up at 41265 rallied above the resistance line and closed the first 5mts candle in red. The length of the candle was quite long — indicating the amount of trades taken place to settle the price discovery. Again the opening is by a gap — which indicates the shift in macro outside of our trading hours. The best trades that can be taken are...

viswaram

Bank nifty opened at 41236 below the resistance level of 41312 & made a real green bullish candle. A move of 206pts in the first 5mts itself. This did not last and the gain was given up by 09.50 wherein the support level was broken conclusively. There was a test at this SR level, price action from 09.55 to 10.15 — but the selling proved quite strong. And what we...

viswaram

I will be slightly modifying the daily postmortem journal to include 5 major sections 1. Price action of bank nifty index 2. Price action of the 6 major components in bank nifty 3. The option strategy that would have worked today 4. Comparison of BankNifty vs SPX (S&P500 US index) 5. 15mts & 1hr TF of Bank nifty to view the broader trend Bank nifty opened gap up...

viswaram

Banknifty opened gap up at 41513 much above the final resistance level of 41312. The first candle was a huge bearish one with its close breaking the support level. I seriously expected the further candles also to be bearish as the tone set was bearish. But what followed was quick recovery ie from 09.20 to 10.05, the reason i said recovery was because there was no...

viswaram

We just had a 1hr of trade today - Muhurat Trading as part of Diwali 2022 ie from 18.15 to 19.15. Bank nifty opened gap up at 41348 just above the resistance level of 41312 made a confusing kinda kindle the first 5mts. The wicks were very long as well as the body - so the momentum was hard to guess. For the next 10 candles BN traded just below the resistance...

viswaram

Bank nifty opened gap up at 40370 almost midway between the support & resistance levels. The opening 15mts indicated the direction is towards upside (3 good green candles) and we were not disappointed. Usually BN makes fake move in the opening minutes - but today’s strength was quite strong. #AXISBANK had announced good results & this was the fresh trigger that...

viswaram

Bank nifty opened gap down at 40149 almost at the support level and then continued to trade downwards. Looking at the first 15mts of trade i thought we would see a giant red daily candle - but that did not happen. The selling got arrested 39887 level even before the 2nd level of support reached. This may indicate that today’s trade is just positioning for the...

viswaram

Bank nifty opened gap up at 40556 and tried very hard to go up, even though it tried for the first 18 candles - BN was unable to just rally. This may be due to exhaustion after few days of rally. Or maybe the fresh longs are waiting on the sidelines for another trigger. From 10.40 to 13.05 we had a beautiful fall which even closed the gap, but couldnt take out...

viswaram

Bank nifty opened gap up at 40252 much above the resistance level of 40154. The first candle was bearish, so was the price action till 09.35. But the support level of 40154 held quite strong and there was an immediate bounce. The green candle at 09.40 almost took back the bearishness of the preceding 3 candles. For the remainder of the day, bank nifty traded in...

viswaram

Bank nifty opened right at the support level, made a hammer kind of pattern in the first candle. The next candle close was above the support line and then the next 2 candles were of strong bearishness. Looking at the first 20mts of trade i strongly felt bank nifty may trade lower. But what really happened was a strong rally from 09.35 to 10.20. This is quite...

viswaram

BN opened mega gap up at 39446 breaking through 2 resistance levels in a single go. Even after mega gap-up - never in the day BN attempted to close down the gap - this shows the immense short covering + fresh long additions in the opening hour. Traders who had the guts to do the 9.20 straddle would have made lot of money today in spite of the surge in options...

viswaram

Bank nifty opened a bit gap down at 38957 and till 09.50 it was failing to close the gap or trade higher. Remember yesterday we discussed that the top made on 12th did not break the swing high of 11th - read here. It proved that the final hour of yesterday’s close was basically short covering and not fresh longs. The opening 30mts today gave all those who covered...

viswaram

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...

viswaram

Bank nifty’s performance today was quite surprising. Opened at 39058 right near where we closed yesterday. Usually BN has the habit of opening gap up or gap down everyday, but today’s open was the first surprise - the trade was almost the continuation of yesterday’s price action. Secondly the IV (implied volatility) of bank nifty was very low even while...

viswaram

SPX fell 2.8% & NDQ 3.88% on friday and the handout to us today morning was not that positive. As expected bank nifty opened gap down 38461 below the support level of 38698. The first candle was bearish, closed down & may have indicated that the rest of the day will be negative. But what happened in the next 2 candles were the opposite, a hammer the 2nd candle...

viswaram

The chart pattern we were expecting on 6th Sep came today. I think this is the 2nd or 3rd occurrence wherein the expiry day chart patterns are decoupled with the normal trading days. It may be due to huge positioning or legally possible manipulation by the institutional desk. Look at the island price action for expiry day alone & the previous day close = next day...