Bank nifty's today trade happened within the range set yesterday. The opening was gap up at 39129 moved up hit the resistance line at 38699 and then consistently moved down till 11.15. From that time to 14.55 the trades were well contained and peaceful. But at 15.00 there was a heavy move of 250 points much similar to the trades around that time yesterday.
We shouldnt take this lightly, due to the momentum in this 5mts candle - the top 6 BN components had the same plunge (at 15.00). There is a person, company or an institution shorting the individual stocks or the index - Only heavy shorting can build up so much momentum, the long unwinding may not. Going by the options data, i have not seen such high volumes for almost all the OTM CEs, The farthest OTM 44500 CE had a volume of 55 lakhs. If these are fresh short positions then we may see heavy drop in the days to come.
5mts analyzed for the previous days do not show a trend, BN is happy to respect the support and resistance levels.
1hr timeframe is not showing bearish yet, as it stands now the bullish trend should continue.
The daily timeframe also doesnt show any bearish patterns, but the daily swings in the 5 out of 6 trading days can be thought of as an anomaly. Something that happens before another trend is set.
Bank nifty important support and resistance lines
s1: 38699, s2: 37949
r1: 39330, r2: 40149
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