Bank Nifty lacks strength for a decisive move!

Bank Nifty lacks strength for a decisive move!

Indian Market
by 5paisa Research Team Last Updated: 2022-11-15T10:10:01+05:30

Bank Nifty traded in just 266 points range and formed a bear candle as the close was lower than the open.

As the price traded within the prior day's range, it led to the formation of an inside bar. The tight-range breakout did not result in a sharp move. The breakout with an indecisive doji and followed by an inside bar are not given the confidence of a decisive strong bullish bias. Monday's move was with a low volume, which is neither bearish nor a bullish sign. The index is still above the moving average ribbon on the weekly chart, and it has not formed a lower low candle on the daily chart. A swing low is yet to be made on the hourly chart.

A close below the level of 41918 will give the first signs of weakness. And further, a move below the level of 41840 will result in a failed breakout. A close below the level of 41684 would be a short-term negative. But a positive move is likely in case the index sustains above the level of 42231-42345 range. However, we believe the index is likely to be in the sideways between the 41840-42345 range, as long as the index trade between this range trading would be difficult.

Strategy of the day

Bank Nifty has formed an inside bar and a doji formation in a prior trading session. Going forward, a move above the level of 42100 is positive, and it can test the level of 42310 on the upside. Maintain a stop loss at the level of 42098. Above the level of 42310, continue with a trailing stop loss. But, a move below the level of 42098 is negative, and it can test the level of 41846. Maintain a stop loss at the level of 42190. Below, the level of 41846, continues with a trailing stop loss.

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