Bank Nifty Analysis for Wednesday 15th March 2023
The Bank Nifty closed at 153.40 points lower than the previous day’s close on the trading session of Tuesday. The index opened flat and reached the level of 39764, where it faced strong resistance and was unable to break out of this level. As discussed in Monday’s analysis, if the Bank Nifty breaks the level of the previous day’s low, which is at 39456, our first target is at 39175, which we easily achieved. At this level, the market took support and showed some upward momentum but was unable to sustain, and the Bank Nifty fell back to the level of 39251 and closed at the level of 39411.40, which is 153.30 points below the previous day’s close.
When we observe the candlestick pattern in the 15-minute time frame, we can find that a triangle pattern is formed. If on Wednesday, the market opens flat and remains in this triangle range, and after some time, it breaks the triangle either in the upward or downward direction, then we will get good momentum and easily get 100 to 200 points.
When we analyze the candlestick pattern in the daily time frame, we find that the Bank Nifty broke the strongest support, which is at 39421, and the day’s closing is below this support, i.e., at the level of 39411. A spinning top candle is formed today. If the Bank Nifty retains this level for one or two sessions, we will observe a bearish trend in the coming days.
Option Chain Data Analysis
Bank Nifty’s weekly expiry on March 16th, 2023, shows that maximum PUT writing is at the level of 39000, 38500, and 38000, indicating strong support. On the CALL side, the maximum CALL writing is at the level of 40000, 40500, and 41000, indicating resistance.
Trade Setup for Wednesday
- If the Bank Nifty opens flat and remains in the triangle for 15 minutes and after that breaks the level of 39540 and closes the candle above this level, then I am a buyer, and my first target is at the level of 39655, the second target is 39745, and the third target is 39870 but with a small quantity as the market trend is a downtrend.
- If the market breaks the level of 39275 and closes the candle below this level, then I am interested in shorting the market, and my first target is at the level of 39175, the second target level is 39075, and the third target is 38875.
- If the Bank Nifty opens gap-up or gap-down, then we have to follow the price action and trade accordingly.
Bank Nifty faces strong resistance at the level of 39764, and we observe a triangle pattern formed in the 15-minute time frame. The index broke the strongest support, which is at 39421, and we may observe a bearish trend in the coming days. The option chain data indicates strong support at the levels of 39000, 38500, and 38000 and resistance at the levels of 40000, 40500, and 41000. We should trade cautiously, keeping in mind the current market trend and price action.