Bank nifty opened right at the support level, made a hammer kind of pattern in the first candle. The next candle close was above the support line and then the next 2 candles were of strong bearishness. Looking at the first 20mts of trade i strongly felt bank nifty may trade lower. But what really happened was a strong rally from 09.35 to 10.20.
This is quite contrary to the US market closing on Friday - S&P500 fell 2.37%, NASDAQ 3.1%. Almost all of the market participants would have expected the Indian indices to close in red - but again we have seen a sheer outperformance.
Bank nifty traded in a range from 10.25 to 14.50 before finally breaking away from the resistance line and closing higher. Maybe one reason of bank nifty outperformance could be because of the results from HDFCBank - other banks like SBI, ICICI Bank would have generated a buying interest expecting a similar or better quarterly results.
5mts TF shows continuation in bullish trend as another resistance line has been broken
1hr TF starting to show bullishness again because the resistance broken. But until 40200 level is not taken out we cannot confirm.
Bank nifty important support and resistance lines
s1:39739, s2: 39326
r1: 40154, r2: 40691
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