Bank Nifty will attempt to touch all-time high levels!
Bank Nifty recovered the intraday losses and closed above the opening levels.
The banking index recovered almost 300 points from the day's low, and it closed above the 5 EMA, showing that the intraday dips were used to buy. As a result, the index formed a bullish candle as the close level is greater than the opening level. The index closed above the 5EMA after trading most of the time below it. At present, the index is trading above all its key moving averages and more, importantly all these moving averages are in trending upwards and in the desired direction.
The MACD and signal lines are parallel now, and the histogram shows a further decline in momentum. The RRG momentum declined below the 100 zone and entered the weakening quadrant. At the end of the day, the index closed above the moving average ribbon on an hourly chart and has not given a weaker signal yet. But, the index still does not give any weaker signal. This weekly close may have some directional bias for the short term.
Strategy for the day
Bank Nifty has formed a bullish candle on the daily chart and it closed near the day high. The recovery from the lower levels led the BankNifty to close above the moving ribbon, and the dip was used for a buying opportunity. Going forward, a move above the level of 41605 is positive, and it can test the level of 41934 on the upside. Maintain a stop loss at the level of 41490. Above level 41934, continue with a trailing stop loss. But only a move below the level of 41520 is negative, and it can test the level of 41278. Maintain a stop loss at the level of 41605. Below the level of 41278, continue with a trailing stop loss.
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