Banknifty opened gap up at 41513 much above the final resistance level of 41312. The first candle was a huge bearish one with its close breaking the support level. I seriously expected the further candles also to be bearish as the tone set was bearish.
But what followed was quick recovery ie from 09.20 to 10.05, the reason i said recovery was because there was no strength in the upmove - it was just a pull back from the lows. The red candle at 10.15 was quite notable as it broke through the support again but there was no follow through.
The selling was not strong enough to close down the gap made on diwali. So it means the buyers have not sold out their stake - it may send out a positive message that it could be long term positions.
Also the shorts were not powerful either - this is absolutely the case in this trading month. BN either trades gap up or gap down and then sticks to a small intraday range. Very rarely has it broken down or broke out from the nearest SR levels.
Till around 14.45 bank nifty did not move much - but the last 40mts proved quite exciting. BN broke through the support and the final close was quite near the low made for the day.
5mts TF still shows bullishness
1hr TF also shows bullishness - we need to alter the stance only if the supports are taken out in the next few sessions.
Bank nifty important support and resistance lines
s1:40691, s2: 40154
r1: 41312, r2: ATH
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