Postmortem on #BankNifty - 14 OCT 2022 - Weekly Analysis
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 premium - because the traded range of BN was very narrow. Only the opening scare was there - and few traders like me would have chosen not to take any trades today.
Coming back to the rally aspect of S&P500 - if its based on any change in fundamentals, its fine else that index is going to give back more than it made. Thats the classic feature of the bear market rally.
5mts TF has a big change from the analysis done yesterday, all of a sudden its looking bullish after having broken out of the range.
1hr TF is not looking bearish or bullish yet. Further moves are required to cement the direction.
1D TF has now created a doji above the SR level of 39326. This is the same level where BN created a reversal candle on 6th Oct. Unable to guess the direction with contradicting information as of now
1W TF creating a bullish candle, notice how the bottom of the green candle is on the support line and the top is on the resistance with small wicks on either side.
Bank nifty important support and resistance lines
s1:39326, s2: 38698
r1: 39739, r2: 40154
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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 premium - because the traded range of BN was very narrow. Only the opening scare was there - and few traders like me would have chosen not to take any trades today.
Coming back to the rally aspect of S&P500 - if its based on any change in fundamentals, its fine else that index is going to give back more than it made. Thats the classic feature of the bear market rally.
5mts TF has a big change from the analysis done yesterday, all of a sudden its looking bullish after having broken out of the range.
1hr TF is not looking bearish or bullish yet. Further moves are required to cement the direction.
1D TF has now created a doji above the SR level of 39326. This is the same level where BN created a reversal candle on 6th Oct. Unable to guess the direction with contradicting information as of now
1W TF creating a bullish candle, notice how the bottom of the green candle is on the support line and the top is on the resistance with small wicks on either side.
Bank nifty important support and resistance lines
s1:39326, s2: 38698
r1: 39739, r2: 40154
Thanks for reading Viswaram Finance! Subscribe for free to receive new posts and support my work.
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