Pre-open market closed indicating a gap down at 09:07 am and the calculations began to dawn in the traders' minds. The highest gap down was shown by Nifty Private Bank, as expected, the reason already being explained in the previous article (Link) .
Nifty Bank opened above its long term support that we had mentioned earlier i.e. 17517. It hit the support and showed a bullish movement in the first 15 minutes that it tried to sustain in the next 30 minutes, however eventually it failed, thanks to the RBI announcement that disappointed the markets. However, a quick trade matching all the criteria was possible during this period itself before the fall. The following is video of how the price difference was captured.
This trade proved to be just one of the ideal trades throughout the day as 4-5 more trades were taken, all to end in profits as it was a bearish market today with a clear long term resistance at its top. The falling sector was already decided so the Bank Nifty Put Options were rewarding in the later half of the trading session. Have a look at the intraday positions at the end of the day:
A trading session that rewarded the calls and the puts!
There is a high probability of market opening higher on Monday as Bank Nifty has closed near its long term support. The fall in the market henceforth may be halted for a bit with a rise in Bank Nifty above 17517 levels for a few trading sessions since Monday.