Bank Nifty in uncharted territory!
The index closed at a new lifetime high on November 15.
On Tuesday, the Bank Nifty opened above the prior bar i.e. the inside bar and thereafter, it dipped lower, but it did not breach the prior bar low as a result in formed higher high and higher low as compared it's prior trading session. At the end of the day, Bank Nifty jumped 0.70 % and registered another new lifetime high. By closing above Friday's high, it negated the bearish implications of the last two days of price action. An impulsive move in the afternoon, after dull trading in the morning, showed the bull's power. As mentioned earlier, if it trades above the level of 41840, there is no point in shorting the index. Interesting, this level is also the 8EMA. The histogram is still flat, shows a lack of momentum, this is due to the indecisive move in the prior trading sessions.
The index cleared the two-day sideway range with an impulsive move. Going forward, if there is a follow through move to this impulsive move, we might head higher at a brisk pace in that case the index can test 42900. Be with a positive bias if Bank Nifty trades above the 41840 mark.
Strategy for the day
Bank Nifty broke above the two-days of sideways movement and closed at a fresh all-time high. It is still above the moving average ribbon on the hourly chart. Going ahead, a move above the level of 42375 is positive, and it can test the level of 42534. Maintain a stop loss at the level of 42264. Above the level of 42534, continue with a trailing stop loss. But, on other hand, a move below the level of 42000 will mean we can see levels of 41840 in the near term. For now, avoid the short positions and use dips to build long position if the level of 41840 is intact on the downside.
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