Postmortem on Bank Nifty - 25 AUG 2022 - Weekly Expiry

Today's bank nifty movements were quite peculiar. BN opened gap up 39190 rallied up to the resistance line 39330 and continued to settle down around this level. At 11.20 bank nifty made a shocking downside move right at the resistance level, fell almost 150pts in this 5mts candle. What did happen was that all the PE options spiked disproportionately 

See the yellow markers for far OTMs. Because of this move i thought BN would break down, but it didnt until 14.25. The final 1 hour saw a fall of 500 points but none of these far OTMs really spiked again as the expiry time left was less. From the chart unable to understand what triggered this move, but whoever did that at 2.30pm made a failed attempt at 11.20am

However today's price movement did not hit the 1st support level, we ran out of time for it. Today's move is again contradicting the previous days move.

Analyzing the 5mts chart doesnt guide us with a direction, instead it shows in a range.

In the 1hr chart timeframe i had mentioned as the uptrend continuation possibility yesterday. After todays move it more or less at no mans land. We would need to wait for further proof of price to sense the direction. If 37900 support is broken we might see a fresh down trend.

Bank nifty important support and resistance lines

s1: 38699, s2: 37949
r1: 39330, r2: 40149