#candlesticktrading

Bank Nifty traded in a sideways or seller's market on Wednesday, opening within the discussed range but later sliding down to 39837. However, the market was not able to break the support and traded within the range of 39837 to 40050 for the entire day. The Bank Nifty closed at 39999, which is 104 points higher than the previous day's close. Thursday, 23rd March 2023 marks the weekly expiry of Bank Nifty.Candlestick Pattern AnalysisAnalysis of Daily Time FrameUpon analyzing the candlestick pattern on the daily timeframe, it was observed that Bank Nifty closed above the resistance of 39849. However, it was noted that in the past, Bank Nifty has not been able to sustain a breakout above an important resistance and has come down to lower levels. For this reason, if Bank Nifty closes the candle above 40147, only then it can be confirmed that the market is in an uptrend.Analysis of 15 Minute Time FrameAnalyzing the candlestick pattern in the 15-minute timeframe for intraday purposes, it was observed that the level 39839 is strong support for the market, while the level 40050 is the strong resistance for the market.Analysis of Option Chain DataAnalyzing the option chain of Bank Nifty, it was found that the maximum PUT writing is at the levels of 40000, 39500, and 39000, which act as support for the Bank Nifty. Meanwhile, the maximum CALL writing is at the levels of 40000, 40500, and 41000, which act as resistance.Trade Setup for Thursday- If Bank Nifty opens flat or in the range of 39920 to 40050 and spends some time in this range, then breaks out in an uptrend and closes the candle above 40080, the first target is 40253, the second target is 40368, and the third target is 40461.- If Bank Nifty breaks out of the range in a downtrend and closes the candle below 39850, the first target is 39786, the second target is 39655, and the third target is 39523.- If the market opens with a large gap up, and Bank Nifty forms the shooting star with its first candle, then I am going to short the market with a small quantity. On the other hand, if the market opens with a gap down and the first candle forms the hammer, I am going to buy the CALL option.Given that Thursday marks the weekly expiry of Bank Nifty and Fed news is also in the market, traders are advised to follow strict stop-loss rules.Also read our disclaimer here before trading

Bank Nifty showed a strong upward trend in Tuesday's trading session, closing at 39894, which is 533 points higher than the previous day's close. Although Bank Nifty opened gap-up, it failed to sustain the opening range and slid down to 39363. However, Bank Nifty took support from this level and moved in an uptrend to the level of 39576 for the second time, but the market could not break this resistance. After spending some time in this range, the market touched the level of 39393 and took support from it. In the third attempt, Bank Nifty broke level 39505, indicating an uptrend in the market as predicted in yesterday's analysis.Analysis of Candlestick Patterns in Daily and 15 Minute Time FrameWhen analyzing the candlestick chart in the daily time frame, it is observed that Bank Nifty closed above the resistance level of 39752, which was previously strong support. It is now acting as resistance, and the new resistance for Bank Nifty varies from 39900 to 40148. If Bank Nifty closes above level 40148 tomorrow, upward momentum in the market is expected, and Bank Nifty may touch the level of 41000 in a few days.Analyzing the candlestick pattern in the 15-minute time frame for intraday trading, the levels of 39456 to 39573 are strong support for Bank Nifty.Option chain analysisOption chain analysis reveals that the maximum PUT writing is at the levels of 39500 and 39000, acting as strong support for the market. The maximum CALL writing is at 40000, 40500, and 41000, which act as strong resistance levels for Bank Nifty.Trade Setup for Wednesday's trading session- if Bank Nifty opens within the range of 39850 to 40047 and spends about 30 minutes in this range, touching both levels once or twice, then breaking the level of 40047 can lead to intraday targets of 40172, 40256, and 40368.- If Bank Nifty opens near the support zone of 39600 and a trend reversal candle, such as a hammer candle, is formed, buying would be recommended. If the trend reversal candle is not formed, then waiting for the market to spend 15 to 30 minutes in this range and then breaking the level can still lead to buying opportunities, with targets of 39752 and 3950.- If the market opens with a large gap-up or gap-down, it is best to wait and watch the price action of the candlestick pattern before taking any trades.I am not interested to short the market at this time or Level.