Postmortem on #BankNifty - 13 OCT 2022 - Weekly Expiry
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 yesterday another opportunity to go short - and it worked. Banknifty fell from 09.50 to 10.30 the first leg, broke the support line of 38698.
It spent 8 candles in the SR region and then broke down again from 11.10 to 11.55. What was expected is the pullback to the SR region ie from 12.00 to 12.55. And what was totally unexpected was the break through the resistance line ie from 13.50 to 14.45.
It took me by surprise, i wasnt expecting BN to go higher than the resistance line but it went through anyway. The move from 14.45 to 15.05 made real sense - and i would say BN was saved by the bell today.
I had some 38500 PE buy positions that went to zero - had there been some more time - it would have worked out very well. Anyways its about respecting the support & resistance levels and no body can predict the exact closing levels with 100% accuracy.
5mts TF shows range bound trade with a small bearish slope, mostly because the support level has been broken
1hr TF shows range bound trade only - no bearish trend yet
Bank nifty important support and resistance lines
s1:37946, s2: 37247
r1: 38698, r2: 39326
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The opening 30mts today gave all those who covered yesterday another opportunity to go short - and it worked. Banknifty fell from 09.50 to 10.30 the first leg, broke the support line of 38698.
It spent 8 candles in the SR region and then broke down again from 11.10 to 11.55. What was expected is the pullback to the SR region ie from 12.00 to 12.55. And what was totally unexpected was the break through the resistance line ie from 13.50 to 14.45.
It took me by surprise, i wasnt expecting BN to go higher than the resistance line but it went through anyway. The move from 14.45 to 15.05 made real sense - and i would say BN was saved by the bell today.
I had some 38500 PE buy positions that went to zero - had there been some more time - it would have worked out very well. Anyways its about respecting the support & resistance levels and no body can predict the exact closing levels with 100% accuracy.
5mts TF shows range bound trade with a small bearish slope, mostly because the support level has been broken
1hr TF shows range bound trade only - no bearish trend yet
Bank nifty important support and resistance lines
s1:37946, s2: 37247
r1: 38698, r2: 39326
Thanks for reading Viswaram Finance! Subscribe for free to receive new posts and support my work.