BankNifty is in a commanding position!

BankNifty is in a commanding position!

by 5paisa Research Team Last Updated: Dec 10, 2022 - 05:28 pm 10.1k Views
Listen icon

On Wednesday, the Banknifty outperformed the frontline gauge as it ended the day up by 0.70% and with this, it closed at a new lifetime high. 

The price action on the daily chart formed a bullish candle carrying a higher high and higher low. The index has now extended over 50% of the prior upswing. In any time frame, the index has not yet given any kind of weak signal. Even on the hourly chart, it has not closed below the prior bar low. Wednesday's strong bullish bar shows the strength in the sector. Unless it closes at least below the prior bar low, it will be the first sign of weakness. As mentioned earlier, the index may go on to test the levels of 43069 -288 on the higher side in the short term. That said, there are negative divergences developing on the hourly chart, but this needs confirmation. Futures data shows long unwinding is happening in the market. The index breadth is negative. Only Kotak Bank and HDFC contributed towards today's gain. However, we would suggest don't fight the trend and continue with the long position as long as the prior day's low is protected.

Strategy for the day

Bank Nifty traded in the range mostly. But, it formed a bullish bar carrying a higher high and higher low. A move above the level of 42585 is positive, and it can test the level of 42755 on the upside. Maintain a stop loss at the level of 42454. Above the level of 42755, continue with a trailing stop loss. But, a move below the level of 42454 is negative, and it can test the level of 42194. Maintain a stop loss at the level of 42565. Below 42194, continue with a trailing stop loss. However, the call for the day would be with the trend as long as the previous day's low is not breached.

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. Also, The
Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Weekly Market Outlook for 4th March to 8th March

In the week gone by, Nifty traded with higher volatility as the index corrected during mid-week upto 21860, but it then witnessed a smart recovery to register new record high and the index ended the week just below 22400 with weekly gains of three-fourth of a percent.

Best EV Stocks in India 2024

As India shifts to a greener future, the electrically powered cars and trucks market will rise significantly in 2024. This article investigates the best EV stocks in India, highlighting firms leading the way in innovation, sustainability, and market capitalization.

Best Banks in India 2024

Navigating the many options for banking services becomes a crucial task for both individuals and enterprises as we enter the Indian financial scene in 2024. The top banks in India provide a wide range of services that extend beyond traditional banking, serving as cornerstones of the country's financial stability. These best banks in India offer individualized client care and state-of-the-art digital solutions that reflect the changing needs of the financial industry.