Bank nifty opened today right at the support level at 37955 (see yesterday's SR https://www.viswaram.com/2022/08/postmortem-on-bank-nifty-22-aug-2022.html). The first 2 to 3 candles were quite bullish filling up the gap. BN rallied all the way to 38560 level before pulling back. The price action from 10.05 to 11.05 was not so volatile as we thought it should be, considering the price movements in the last 2 to 3 days. During this 1 hour the option premium also remained stable indicating that there wouldnt be a heavy one sided move.
However at 12.30, BN made some quick progress towards the upside by steadily building on the gains. Was this a planned move to get the call writers trapped - i am not sure. I personally believe it could be because once the 38600 level was taken out, there was a heavy short covering rally (as predicted yesterday https://www.viswaram.com/2022/08/postmortem-on-bank-nifty-22-aug-2022.html)
The last 2 hour price action may also because of the Finnifty expiry and the big boys would have bought HDFC twins & ICICI bank to ensure it closes at 17900. If yes we can expect an unwinding tomorrow forenoon session.
Bank nifty closed well above the resistance line of 38699 indicating a bullish stance.
5mts chart of the previous days, too early to comment if the last 2 day's price action was a bullish reversal or a price consolidation.
The 1hr chart shows today's price action negating yesterday's. One of them has to be a fake, not sure which one.
Bank nifty important support and resistance lines
s1: 38699, s2: 37949
r1: 39330, r2: 40149
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