Postmortem on #BankNifty - 23 SEP 2022
Bank nifty decisively broke 2 support levels today - opened gap down at 40429 midway between the SR levels. Made continuous red candles and broke the first support level at 40149 at 9.30. The red candles didnt really stop till the 2nd support level of 39739 was reached. The first batch of selling took a pause only at 10.20.
But by 12.10 even this SR level was broken. Bank nifty did not however cross or reach the 3rd support level at 39326 and we might be able to think that the BN was saved by the bell today.
You might remember how disappointed i was when BN did not fall below 40300 yesterday - see here
The fall that had to come yesterday, came today.
Unlike other days the bulls did not have enough strength to fight back today. There was not even a strong green candle in the day - which is not usually the case. Right from the rally from 32500 to ATH, BN had strong green candles every time there was a dip - an indication that bulls still had the upper hand.
Today's price action looks all pre determined and planned, thats why the entire pack of banknifty components had the similar chart slope. Only Kotak bank had a different kind of pattern during the last 1 hour of trade.
You might remember the interim double top that i had marked out in yesterday's newsletter - that took more prominence today and seems like we can fix it as a strong double top. 5mts TF starting to show the bearish signs, esp when 2 support zones got broken today
1hr TF although has not started showing bearish signs, the double top looks quite important and we can remain cautious. The 38700 support line if broken over the next 2 sessions - we can start going short in the 1hr TF.
The daily TF is very much lit with the long red candle today. For a daily bearishness indicator to flash the support level of 37247 has to be taken out.
Remember last week i showed you a possible shooting star candle stick forming in the weekly chart, its very much evident now. If the last 3 week's candle can be taken together we can call it an approx Evening Star Pattern. Bearishness on the weekly scale will only start if BN breaks 36559 which is a long way from here
Bank nifty important support and resistance lines
s1:39327, s2: 38698
r1: 39739, r2: 40149
more ideas at viswaram.com
no predictions, no trade recommendations !
But by 12.10 even this SR level was broken. Bank nifty did not however cross or reach the 3rd support level at 39326 and we might be able to think that the BN was saved by the bell today.
You might remember how disappointed i was when BN did not fall below 40300 yesterday - see here
The fall that had to come yesterday, came today.
Unlike other days the bulls did not have enough strength to fight back today. There was not even a strong green candle in the day - which is not usually the case. Right from the rally from 32500 to ATH, BN had strong green candles every time there was a dip - an indication that bulls still had the upper hand.
Today's price action looks all pre determined and planned, thats why the entire pack of banknifty components had the similar chart slope. Only Kotak bank had a different kind of pattern during the last 1 hour of trade.
You might remember the interim double top that i had marked out in yesterday's newsletter - that took more prominence today and seems like we can fix it as a strong double top. 5mts TF starting to show the bearish signs, esp when 2 support zones got broken today
1hr TF although has not started showing bearish signs, the double top looks quite important and we can remain cautious. The 38700 support line if broken over the next 2 sessions - we can start going short in the 1hr TF.
The daily TF is very much lit with the long red candle today. For a daily bearishness indicator to flash the support level of 37247 has to be taken out.
Remember last week i showed you a possible shooting star candle stick forming in the weekly chart, its very much evident now. If the last 3 week's candle can be taken together we can call it an approx Evening Star Pattern. Bearishness on the weekly scale will only start if BN breaks 36559 which is a long way from here
Bank nifty important support and resistance lines
s1:39327, s2: 38698
r1: 39739, r2: 40149
more ideas at viswaram.com
no predictions, no trade recommendations !
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