Bank Nifty got bearish confirmation of long-legged doji!

Bank Nifty got bearish confirmation of long-legged doji!

Indian Market
by 5paisa Research Team Last Updated: 2022-07-27T10:03:18+05:30

The Bank Nifty closed with a loss of 0.87% and with this it managed to close below the low of prior days long-legged doji. As a result, it got the bearish confirmation for the previous day's long-legged doji candle. The index has formed a strong bearish bar and it has pierced it's 200DMA on the downside. The intraday rallies were sold into. The next meaningful support is placed at the 36036-level followed by level of 35897. For a bullish reversal, it must move above Monday's high of 37011. The RSI declined from the overbought condition. Watch the 64 zone on the RSI, and any decline below this will result in further bearish strength. The MACD histogram shows a decline in bullish momentum. For the day, the index managed to hold the 5EMA support. Traders were nervous ahead of the US Federal Reserve meet on rate decision on Wednesday night, just before the monthly expiry. We may experience some more selling pressure or high volatility in the next couple of days. The Elder impulse system has formed a neutral bar on Tuesday. As the risks of the event are lined up, Fed Meeting and monthly expiry, the risk is higher. For now, avoid aggressive long positions, exit if any. A move below 36321 is negative, and it may test levels of 36036 on the downside.

Strategy of the day

The Bank Nifty closed at the day low and moreover, it got bearish confirmation of long-legged doji. A move 36515 is positive, and it can test 36665. Maintain a stop loss at the level of 36430. A move below 36321 is negative, and it can test the lev 36036. Maintain a stop loss at the level of 36430. Below 36000, continue with a trailing stop loss for a target of 35897.

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