Postmortem on Bank Nifty -28 JUL 2022 Monthly Expiry

BN opened gap up at 37102 very near the resistance line denoted yesterday. By 10.20 BN took out the resistance and the day’s price action shows that this region has become the new support level. During the day after this resistance was crossed — there was no looking back, BN did not break down.

This is usual when there is high buying momentum or when the shorts are covered very quickly — what has really happened only time will tell. Final close was at 37336.

The gap up opening of today is really visible on the 5mts timeframe of the past few days. The break away gap & the resistance breakout may propel BN upwards

1hr chart also confirms the break out from the channel. If the last high is taken out — the further moves in BN will become interesting. Mainly because the global markets are still in bear phase whereas Indian stock markets are defying the global set up.

Important Support & Resistance levels

s1: 37251, s2: 36555

Originally published at https://viswaram.substack.com on July 28, 2022.