Finally some sanity in the markets today. The one way rally from July month was quite unconvincing, today's price action shows there is a sense and character to the bank nifty we know. This minor blip will lead to either a small pullback or consolidation at current price levels. If it does we can confirm that the uptrend is strong and healthy.
If its a one way trip from 32500 to 39500 without a price consolidation or pullback it is quite dangerous - because the fall is going to be harsher and meaner.
BN opened at 39732 gap up and formed 5 strong red candles, from 10.50 to 11.10 the price action at the support area indicated that its not going to be held. Finally BN found support at 38900 level (although its not marked in my chart), from 12.30 to 13.20 BN tried to reach for the resistance line but failed.
Final closing was at 38900 level, if BN forms further price action at this level, i will include this as an important support/resistance line.
5mts chart for the previous days - today's move is well visible.
The 1hr chart also clearly highlights today's price move, the coming days will be crucial to identify if its a pull back or near term top formation.
Note the big red candle in today's daily timeframe.
Important support and resistance levels
s1: 38703, s2: 37949
r1: 39322, r2: 40138
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