Postmortem on Bank Nifty - 12 AUG 2022 - and Weekly Analysis

Bank nifty (BN) had a steady upside day today, opened at 38942 swayed down 38740 within the first 30mts and then covered it back up by 11.20. It shows BN is heavily skewed to the buying momentum - either its fresh money loading up all the bank stocks or it may be a pump, wait and then dump tactic by the FIIs. Obviously we wouldnt be able to guess without further price actions.

For a moment i thought BN would be correcting when i saw the chart formation from 14.15 to 14.25 - but it was short lived. Since we are heading into a holiday on Monday, Independence day - i was assuming BN may end up lower with profit bookings.

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5mts candles for the previous trading days, the chart looks bullish

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The 1hr chart also looks bullish with BN trading strongly above the support line (breached by gap up)

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Daily timeframe showing either consolidation at current level or further upside momentum. For any downside movement, BN would have to breach the falling channel (green sloping line top one), it doesnt look bearish unless 35947 is broken.

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Weekly timeframe showing strength with 4 consecutive green candles and a steady reversal right from 32834 level. Decade long rising channel indicated by pink upward sloping line, BN is well within the range.

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Important Support and resistance points

s1: 38698, s2: 37948

r1: 39327, r2: 40151


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