BankNifty forms an inside bar on weekly scale!

BankNifty forms an inside bar on weekly scale!

Indian Market
by 5paisa Research Team Last Updated: 2022-10-17T09:00:58+05:30

The Banknifty ended the last week with modest gain of 0.33% and it formed a bullish candle with minor shadow on either side. For most part of the week, it traded in Monday's range, except for Friday. On Friday, it opened with a positive gap and almost tested near the previous week's high. However, it failed to move above the previous week high as a result it formed an inside bar. It just closed on the 20 and 50DMA lines. The 20DMA is about to cross under the 50DMA, which is a short-term negative. The Relative strength and momentum are waning within the leading quadrant. In any case, a decisive decline below the 20 and 50DMAs will lead to a significant weakness. The last week's low of 35518 will act as key support for now. The 38192, which is the 38.2% retracement level of the prior uptrend, is the major support for now. At the same time, a failure to move above 39586 will also be a negative factor. For a bullish bias, the index has close above 39586 with a strong price move and strong volume. The decline in the upper Bollinger band suggests the consolidation of cards for some more time. Currently, the Anchored VWAP resistance is at 39615, and the support is at 37530. This broad-range consolidation will not give any decisive trades.

The Strategy for the day

The Banknifty has formed an inside bar on the weekly time scale. A move above the level of 39384 is positive, and it can test 39525. Maintain a stop loss at the level of 39290. Above the level 39525, continue with a trailing stop loss. But, a move below the level of 39200 is negative, and it can test 39000. Maintain a stop loss at the level of 39290. Below 39000, continue with a trailing stop loss for a target of 38720.

 
 

 

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