Bank nifty opened gap up at 40370 almost midway between the support & resistance levels. The opening 15mts indicated the direction is towards upside (3 good green candles) and we were not disappointed.
Usually BN makes fake move in the opening minutes - but today's strength was quite strong. #AXISBANK had announced good results & this was the fresh trigger that pushed BN up. Kotakbank & ICICIbank also supported BN.
Sharp upmove till 10.00 and then flat pattern at the resistance level of 40691, breakout at 11.25 to 13.05. A rejection from 41000 level at 13.10 and then a fall below the support line till 14.50. The final close was above the resistance line which shows good strength.
Remember yesterday we discussed the price action formed on expiry was pure positional - read here
Look at the island formed yesterday (encircled in yellow). Today's opening matching day before yesterday's closing (2 yellow horizontal lines). I am now kind of getting curious why we are continuously having island days for expiry…
BN is showing super bullish stance eventhough the entire global macros are worsening week by week. Our indices are widening the spread with SPX. So technically bank nifty is bullish but then fundamentals are stacked against it. When would the reversal come - no clear indications yet.
5mts - TF showing setting bullish tone as resistance breached.
1hr TF also showing bullish signal as an important resistance is breached. Just one more resistance to cross the all time high.
1D TF - showing bullish strength
1W TF - look at the strength of this week's candle. This negates the pattern formed on the 19th sep week.
Bank nifty important support and resistance lines
s1:40154, s2: 39739
r1: 40691, r2: 41312
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