Bank nifty opened gap down at 40149 almost at the support level and then continued to trade downwards. Looking at the first 15mts of trade i thought we would see a giant red daily candle - but that did not happen.
The selling got arrested 39887 level even before the 2nd level of support reached. This may indicate that today's trade is just positioning for the weekly expiry. We will have to closely analyze tomorrow's trade to get the correct perspective.
No better day than today to show how beautifully the support & resistance work in technical analysis. Support level breached at open, and the same resistance line tested during close and failed. As per pure technical analysis further trade should happen below this SR line - but since the expiry was at play, we cannot assume with perfection.
Again a beautiful day for the 9.20 straddlers, but looking at the volatility created - who would really dare?
Last few days BN creating gaps which shows the lack of conviction of traders as well as investors to rally or break during trading hours. Support & resistance taken out by gaps creates immense possibilities to the #SGXNifty traders & institutions. Here the average trader has the option only to react once the day opens.
5mts TF not giving an accurate direction at present. Momentum is still towards upside.
1hr TF also not providing accurate direction at present
Bank nifty important support and resistance lines
s1:39739, s2: 39326
r1: 40154, r2: 40691
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