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Below is Quote on Market Wrap Up 13 July 2023 By Mr. Rajesh Bhosale, Technical Analyst at Angel One Ltd

The trading session for Bank Nifty began with a significant gap up opening above the previous session's high. Initially, it appeared that the bulls would maintain control, similar to the previous weekly expiry, and we could witness an upward trend. However, there was a lack of follow-up buying at higher levels, followed by a sharp sell-off during the second half of the session. This sell-off erased most of the morning gains to eventually end on a muted note at 44665.

In our previous outlook, we mentioned the formation of a Bullish Wolfe Wave pattern on the hourly charts, and today's session saw a strong opening that supported this observation. However, the bullish sentiment was not as strong as anticipated, and prices have retraced back to the previous closing level, coinciding with a crucial support zone. On the daily chart, the range of 44500 – 44400 represents a robust confluence area, characterized by the previous breakout level, the 20-day Simple Moving Average (SMA), and a key retracement level. We maintain our viewpoint that if the bulls want to stage a comeback, this support level would ideally be the pivotal point. However, if breached, we may witness further price correction in the near term, potentially reaching levels below 44000. On the other hand, there is a cluster of resistance around today's high of 45200, and the bulls must surpass this level on a sustained basis to regain momentum, potentially driving prices towards the all-time high levels of 45655 and beyond. Notably, a few private banks displayed encouraging strength today, so it is advisable to focus on such stocks that may offer relative stability in these volatile conditions.

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