Can Bank Nifty extend its winning streak for sixth straight day?

Can Bank Nifty extend its winning streak for sixth straight day?

by 5paisa Research Team Last Updated: Dec 14, 2022 - 05:27 pm 21.4k Views
Listen icon

The Bank Nifty extended its winning streak for the fifth straight session on Thursday as it gained 0.64% and it also, outperformed Nifty 50. It managed to close above its prior swing high and the previous day's high as well. It has formed a bullish body candle on the daily chart with shadows on both the side, which indicates a tinge of volatility during the day. After breaking out of the first level of downward channel resistance, it closed at the next level of sloping line resistance. It is above all key short-term and medium-term averages i.e. 20, 50 and 100. Interestingly, the 20DMA has crossed over 50DMA. The long-term moving average, 200DMA, which is currently placed at 36426 i.e. 200 points away from the close may act as immediate resistance. The daily 14 periods RSI is near the over-bought zone. The MACD is in strong bullish momentum. The Weekly MACD has given a fresh buy signal. But, on the lower time chart, 75-minutes, The MACD is showing exhaustion of a trend and is in overbought condition. It may lead to some profit booking. In case of profit booking, identical low of previous two trading session might act as a support level which stands at 35870. It is better to be with a cautiously optimistic view in the near term as it's Friday and traders might likely to go home with light positions.

Strategy for the day

Bank Nifty made indecisive moves in the afternoon of an expiry day. A move above 36426, is positive, and it can test 36670. Maintain a stop loss at 36110. Above 36670 continue with a trailing stop loss. But a move below 36090 is negative, and it can test 35870. Maintain a stop loss at 36200. Below 35870, continue with a trailing stop loss.

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
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.

Stock in Action – Vodafone Idea Ltd

Vodafone Idea’s Movement of Day