Bank Nifty is back in its sublime touch!
Bank Nifty recovered nearly 350 points from the day's low and it closed near the day's high with a gain of over 0.5%.
The index has registered a new closing high in its history. It closed above the 5EMA and formed a small-bodied candle carrying a long lower shadow, which clearly reflects recovery from lower levels. More importantly, it has formed a higher high and higher low candle when compared to its prior bar. The RSI again moved above 72. On the hourly chart, the index shows that the bulls are holding the strength. It closed above the moving average ribbon, and the MACD line bounced from the zero-line support. The histogram is bullish on the hourly chart. There are no divergences, though the MACD line is below the signal line, and the KST is bearish. The Elder impulse system has formed a neutral bar. As long as the index trades above the level of 43121, it is better to be with a positive bias.
Considering, the index is trading above its key short and long-term moving averages, buying on dips would be an appropriate strategy for traders.
Strategy for the day
Bank Nifty recovered strongly from the day's low and it has recorded its highest close ever in history. Going forward, a move above the level of 43325 is positive for the index, and it can test the level of 43438 on the upside. Maintain a stop loss at the level of 43244. Above the level of 43438, continue with a trailing stop loss for higher targets. But, A move below the level of 43121 is negative for the index, and it can test the level of 42937 on the upside. Maintain a stop loss at the level of 43244. Below the level of 42937, continue with a trailing stop loss for lower targets.
DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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