Bank Nifty extended its winning streak for the seventh straight week!
Bank Nifty extended its winning streak for the seventh straight week as it ended up by 0.71% and with this, it registered it's one of the longest winning streaks.
On the weekly chart, it has formed another bull candle with a higher high and higher low. On the weekly chart, there is no evidence of weakness. That said, for the last three days, it has lost momentum and traded in the range. On Friday, it declined below the rising trendline support on intraday, finally, it recovered almost 200 points and closed above it. It almost tested the 5EMA support line and the bears fail to close below the short-term moving average and the prior bar low. Even on the hourly chart, the index is still above the moving average ribbon.
As mentioned earlier, the level of 42161 will be crucial support for now. Or it must close below the 42334-161 zone of support. Otherwise, be on the sidelines. On the upside, it has to move above the 42590-623 zone for an uptrend to continue. We may not get the decisive trade between the 42161-623 zone. The MACD is flattened, and the RSI failed to move above the 70 zone. The Elder impulse system has formed two neutral bars in a row. Currently, the index is 5.04% above the 50DMA. There is no major technical development on charts for now.
Strategy for the day
Bank Nifty has recovered the initial losses and extended its winning streak for the seventh straight week. A move above the level of 42471 is positive, and it can test the level of 42727. Maintain a stop loss at 42390. Above 42727, continue with a trailing stop loss. But, a move below the level of 42320 is negative, and it can test the level of 42178. Maintain a stop loss at level 42410. Below 42178, continue with a trailing stop loss.
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