Postmortem on Bank Nifty - 05 AUG 2022 - RBI MPC meeting outcome

BN opened at 37868 passed through the resistance line went all the way upto 38150 and then closed the day below the resistance line of 37947. Today's price was relatively stable even when we have a big event like RBI MPC outcome, wherein the interest rate was hiked by 0.5%. On such days BN is expected to move violently reacting to this news. A hike in interest rate is good for financial sector & banks and not so good for borrowers & loan payers.

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If we look at the 15mts timeframe, it shows a possible triple top formation at 38100 price level. This could be crucial going forward, If BN makes another attempt it has to gap up above this resistance. It seems BN cannot pass through the resistance with the current supply and demand, according to me a gap up is the only possibility. Else the further price movements will happen on the downside.TradingView Chart

The triple top is visible on the 5mts candle viewing 4 to 5 days together.

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1hr timeframe shows on the first week of April we had a similar scenario and the BN broke down in the subsequent trading days. It may or may not happen in the current scenario

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Important support and resistance levels

s1: 37242, s2: 36558

r1: 37947, r2: 38704


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