Bank nifty opened gap up at 40802 almost +228 points. The first candle was bearish red & i thought bank nifty will close the gap, but it didnt. Note that BN is trading near all time highs and there is no resistance level here. In spite of these, BN is not breaking down - so the bulls have to be appreciated for their conviction.
There was a small price action made till 11.35 in accordance with the opening move, but it got bought into. The move from 13.45 to closing was totally unexpected - i was thinking who would go into the US CPI data with a bullish mindset ?
At the time of writing this content, the US CPI came in at 8.3% against the forecast of 8.1%. Why should the Indian stock market be worried? Definitely - Yes, because what we saw a pull back rally for bank nifty from 32000 to 40900 is totally unhealthy. If you note the previous week's analysis you may see the references i have made on the resistance levels getting knocked out by BN almost every session, without a consolidation or support.
5mts chart when viewed for the previous days together, most of them were with a gap up & a small intraday rally with almost no correction. Charts say its bullish, but at these high levels i dont have a trade.
The 1hr chart time frame shows the gapup pattern of these days more clearly, just look how easily each of the resistance points were taken out
Bank nifty important support and resistance lines
s1: 40149, s2: 39738
r1: no resistance line because BN near ATH
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