Bank Nifty Analysis for Tuesday 14th March 2023
The Bank Nifty slipped down to 920.75 points to the previous day’s close on the first day of trading in the current week, March 13th, 2023. The market opened flat and went up to the strong resistance level of 40685 from the previous day before reversing. Today’s market trended bearish due to global sentiments build-up caused by the Silicon Valley Bank collapse.
In the 15-minute candlestick pattern, there is no green candle after breaking the day’s opening low, leading to this landslide. In the daily timeframe, the Bank Nifty broke the strong support level at 39743 and closed at 39564, with the day low at 39456. This indicates the start of a bearish trend in the Bank Nifty.
In the next trading session on Tuesday, if the Bank Nifty opens flat and breaks the level of 40375, we may see another bearish landslide in the Bank Nifty, taking it to the level of 38775. The first resistance is at the level of 40800, with strong resistance at 40000.
An analysis of the option chain data for Bank Nifty’s weekly expiry on March 16th, 2023, shows that maximum PUT writing is at the level of 39500, 39000, and 38500, indicating strong support. On the CALL side, the maximum CALL writing is at the level of 40000 and 40500, indicating resistance.
India’s retail inflation for February decreased to 6.44 percent compared to 6.52 percent in January 2023, according to data published by the Ministry of Statistics and Programme Implementation on March 13th.
For Tuesday’s trade setup, if the Bank Nifty opens flat and trades in the range of 39726 to 39564 and breaks the day low of Monday, which is at the level of 39456, it is bearish. In this case, interested in shorting with a first target at the level of 39175 to 38950, and if the trend continues in the larger timeframe of 15 minutes, the target goes to the level of 38775.
If the Bank Nifty opens gap down below 39375, follow the price action and market trend. If the market is bearish, the target remains the same as above. If the market opens gap up somewhere in the range of 40800 to 40000, follow the price action to take a trade. If the trend is upward, the first target is at 40500, with the second target at the level of 41000.
It is essential to remember that we need to plan our trading setup for tomorrow’s market using previous day market data and mark the levels accordingly in our charts. If the present-day market moves according to our analysis and levels we have decided in trade setup previously, we need to wait for the best entry and exit time.