Bank Nifty Market Analysis
Bank Nifty Spot closed @ 44231.45 up by just 17.15 points on 25th August 2023.Today on 28th August 2023 , in the Pre Opening BN is @ 44253.65 , up by 22.20 points. This means a flat opening.
Bank Nifty opened just above the previous close price and was range bound most of the opening hour .At 10:40 am BN has shown breakout behaviour above 44247.44299 is the HIGH of the previous day’s last hour.
Attempt made by 10:30 am candle to break above the day high, but resistance was faced.BN dipped to EMA21 and has rallied back .Analysis of price action reveals weak sellers and strong buyers.
After breaking out of the day’s high created in the opening range, BN is currently breaking out of the same in gallops. The bullish trendline has been broken.BN may retrace a bit and then continue it’s journey upwards.
12:20 pm Sellers have tried to bring the market down, but bank nifty has sustained above EMA21.This shows Bull power in the market. In the 3 minutes timeframe can see exhaustion coming in selling and eventual move above the earlier trend line. Three Doji like candles formed since 12:12 pm candle.12:18 pm candle had volume greater than average.
12:30 pm candle is a breakout candle that has broken out of the ranging move that was seen since 11:30 am.The clear signs were present since sellers were not able to break the 20 EMA.
Another correction and fall seen around 44519.95 BN spot price. Would expect to find BN to find support above EMA21 again.This would be a level to take fresh trade for new longs.High chances of the top the trendline being the support for this correction.
It has been 20 Bars of sideways each (approx. ) before a rally today. So expect a rally after completion of 20 bars of sideways move.20 bars is approximate 1 hour in 3 min time frame. This is coinciding with the top of the trendline around 2:21 pm.
As expected with a huge candle BN has broken out of the ranging price move.The pent up buying building since approx 20 candles leads to the breakout on the bullish side.
With the biggish candle (Marabozu) we see buyers going all into the market.Usually a big candle signifies end of a run and this what we saw.Thereafter till end of the day BN meandered to a close to below the range from where the Marabozu candle emerged. This indicated that BN is still bullish and may pick up where it let off today closing at 44494.65.
