We just had a 1hr of trade today - Muhurat Trading as part of Diwali 2022 ie from 18.15 to 19.15.
Bank nifty opened gap up at 41348 just above the resistance level of 41312 made a confusing kinda kindle the first 5mts. The wicks were very long as well as the body - so the momentum was hard to guess.
For the next 10 candles BN traded just below the resistance line and in accordance with the opening candle, but the final closing candle was very strong and broke through the resistance with impact.
Final close was at 41367. Being a diwali guessing more investors would have participated than traders - although it would have been a profitable day for the straddlers. Usually for diwali people just simply buys some stocks both short term and long term. The buying momentum is what fuels the gap up - but if the macros are not good over the week - we can expect this gap to close down.
Now i do not have a resistance line above this level as BN is now at all time highs. The kind of trades we can play with just support levels and no resistance levels are very narrow.
The first group of people may feel there is a breakout opportunity as ATH is near. The second group of people may go full short as this is the apex. I personally dont feel safe to subscribe to both these group's logic.
5mts TF shows upside momentum.
1hr TF also shows bullish momentum as resistance taken out by gap up
Bank nifty important support and resistance lines
s1:41312, s2: 40691
r1: no marked resistance as near ATH
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