Eventhough bank nifty respected the support & resistance level today, the price action was really abnormal. BN opened mega gap down at 38806 rallied through the resistance line, made a top at 39667 above the swing high of yesterday. At 10.30 the market felt like crashing - but it did not. There was a gradual decline to the support level at 39330. At 13.35 i felt BN will move further down after falling from support, but it didnt. Made a temporary low at 38981 and then pulled back to close just above the resistance.
The chart pattern was similar to nifty50 index, but note that nifty closed 1.22% lower whereas BN closed only 0.6% low. The global markets are really falling whereas our market is holding up - i really dont know how long will this stay.
I also commented that yesterday's rally could be because of short covering, i strongly feel the moves may also be to the quarter end rebalancing, wherein the mutual fund houses has to buy the stocks to ensure the weightage of their fund remains intact.
The orange line is the bank nifty index, the blue line is the s&p500 US index. The out performance of Indian indices is very well evident.
5mts chart viewed with the previous days shows continuation in uptrend.
The 1hr chart also shows uptrend
Bank nifty important support and resistance lines
s1: 39330, s2: 38699
r1: 40149
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