Bank Nifty waiting for decisive cues for further move!

Bank Nifty waiting for decisive cues for further move

by 5paisa Research Team Last Updated: 2022-11-02T10:28:35+05:30

 

Bank Nifty gave away nearly 400 points from the day's high, and it closed with modest loss of 0.04% on Tuesday.

It underperformed the frontline gauge. It took the support on 5EMA for the third consecutive day. The index also faced resistance in the zone of 41677-700 for the sixth day. In fact, the index has been moving roughly 800-900 points in the last six days. A breakout of the either side of this tight-range breakout will give an impulsive move. The only reason it seems, the index is moving in the range is due to the event as US Fed and RBI meeting are lined up in coming days, it will take cues from that for further move.

The RSI is moving in tandem with its nine-period averages. The MACD histogram shows a decline in bullish momentum. The ADX and -DMI are also moving together. The +DMI is above these two, which means the positive bias is intact. The only concern is underperformance compared to the broader market. On Tuesday, the PSU bank index also closed negative. SBI is still stronger. If it trades above the zone of 40840 - 41147 zone of support, be with a positive bias.

Strategy for the day 

Bank Nifty closed on the moving average ribbon support on the hourly chart. Going ahead, a move above the level of 41350 is positive for the index, and it can test the level of 41505 on the upside. Maintain a stop loss at the level of 41230. Above the level of 41505, continue with a trailing stop loss. But a move below the level of 41136 is negative, and it can test the level of 41010. Maintain a stop loss at the level of 41221. Below the level of 41010, continue with a trialling stop loss.

 

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