Postmortem on Bank Nifty - 30 AUG 2022

BN opened at 38516 gap up, within the 2nd candle it broke the first resistance of 38699, however spent time around it till 10.40. The surge up was not arrested till the next resistance of 39330 was hit at 13.50. Again BN spent time till 14.40 around this level before breaking out again and closing at 39520

I was unable to trade on 29th Aug due to a family function, meanwhile it proved to be quite a day.

Today, bank nifty recovered double of what it lost yesterday. Not just it hit the strong resistance line at 39330 but closed decisively above it. However i feel from the charts that these moves were fake - it could be because of short covering as 31st is trading holiday here while the global market is in uncertain territory.

I also suspect a trading manipulation could occur on Tuesdays as FINNIFTY is expiring and the first 6 stocks in BANKNIFTY has a good weightage in FINNIFTY. Its quite easy to take a position in 1 index on Tuesdays and counter it in the upcoming Thursdays and make money both ways. NSE and SEBI has to find a way to restrict this anomaly

TradingView Chart

5mts chart for previous days viewed together shows breakout from strong resistance.

TradingView Chart


1hr chart also shows breakout from the recent swing high.

TradingView Chart


Bank nifty important support and resistance lines
s1: 39330, s2: 38699
r1: 40149


Comments