Postmortem on Bank Nifty - 17 AUG 2022

BN opened at 39351 gap up with a strong bearish first candle tearing through the support. BN hit an intraday low of 39202 in the 4th candle and then reversed from there. From 10.10 to 14.10 BN traded near the support/resistance line of 39237 before finally breaking out and closing higher. At 15.00 when BN hit 39500 i was thinking that BN may move up due to short covering. But it did not and the final close at 39416 was below the intraday high of 39504.

Today's move was quite contradicting to the move we had yesterday (my personal opinion). Ideally the market should have moved lower if we respect the price action made yesterday. However the moves are not predictable always with 100% accuracy - but the support and resistance points may be recorded clearly.

TradingView Chart


If we observe the 5mts chart for the last 5 days, there is no anomaly in the move of today's. The 45 degree uptrend is intact and we can go bearish only if the 38700 support is broken


TradingView Chart

1hr timeframe is also bullish, we can go bearish only if 36500 support level is breached and the descending channel (green) is crossed with momentum.

TradingView Chart


Important support and resistance points

s1: 39327, s2: 38691

r1: 40157, r2: 41333

Comments