Bank Nifty running out of steam!

Bank Nifty running out of steam!

by 5paisa Research Team Last Updated: Dec 12, 2022 - 11:09 am 7.5k Views
Listen icon

Bank Nifty broke out of a 10-day tight-range base with a strong bullish candle.

On Friday it opened higher and registered a fresh all-time high. However, it failed to sustain at higher levels as profit booking emerged ahead of the weekend and the index closed a little over 200 points from the day’s high, despite trimming its gains from the day’s high it ended the day with modest gains of 0.08%. On the daily chart, the formation resembles a hanging man candle. On the weekly basis, it jumped over 1% and formed a bullish candle.

Bank Nifty has closed just on the channel support line on the daily chart. Currently, it is trading 1.72%above the 20DMA and 5.95% above the 50DMA. But there are some caution signs at the lifetime high. Apart from the hanging man candle, all the major indicators show fatigue in the index. The RSI is flat for the last two months, the MACD line and Signal line are moving together, and the histogram shows a lack of bullish momentum. KST and the TSI indicators have been in the bearish set-up. As the index is at the lifetime high, there are no weaker signals, but there are exhaustion signs. The PSU banks look very strong and leading the index rally. For now, if the index trades above the level of 43640, be with a positive bias, and it can test the level of 44200. But, in any case, if it declines below Friday’s session low of 43300, it will consolidate further in a counter-trend.

Strategy for the day

Bank Nifty strongly recovered in the last hour. A move above the level of 43640 is positive, and it can test the level of 43800. Maintain a stop loss at the level of 43580. But, a move below the level of 43520 is negative, and it can test 43300. Maintain a stop loss at the level of 43607. Below the level of 43300, continue the short position with a trailing stop loss for lower targets.

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Disclaimer

Investment/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.
Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Swing Trading Stocks: Week of 26 February 2024

Swing Trading Stocks for the Week

How ONDC is changing the ecommerce game in India?

One company is shaking things up in the ecommerce space. And that isn’t a flashy VC backed start-up. It's a company backed by the Indian government. I am talking about Open Network for Digital Commerce (ONDC). It has recorded a whopping 5.5 million transactions in December – its highest monthly figure since its inception.  To put this into perspective, in January of the previous year, ONDC had only logged 2,000 orders.

Analysis of Upcoming IPO - Platinum Industries Limited

What Platinum Industries Limited do? Platinum Industries Limited is stabilizer-producing firm that was founded in August 2016. firm produces lubricants, CPVC additives, & PVC stabilizers. Products from firm are utilized in packaging materials, rigid PVC foam boards, SPC floor tiles, electrical wires & cables, PVC fittings, PVC pipes, & more. Situated in Palghar, Maharashtra, company's production facility has 21,000 square feet of land.