Will Bank Nifty take over the positive baton on Tuesday?

Will Bank Nifty take over the positive baton on Tuesday?

Indian Market
by 5paisa Research Team Last Updated: 2022-07-19T09:15:45+05:30

Monday's session turned out to be a marvellous one for the Bank Nifty as it closed with gains if nearly 2% and near its days high.

 Even though, the heavyweight HDFC Bank was down by over 1%, the index managed to maintain its upward rhythm throughout the day, and it closed near the day high. As a result, it formed a sizable bullish candle on the daily chart. There was a huge freak trade at the opening. After four days of consolidation, the index closed above the four-day high, with this it has managed to reclaim its 100DMA. It has also cleared the first layer of resistance and it closed right near to its crucial sloping trendline resistance of the channel. The index took support almost at the 21EMA on Friday. Monday's bounce is needs to cross the last week's high of 35543 for a confirmation of the further upside. The RSI closed above its nine-period average and above the 60 zone. The Elder impulse system has formed a strong bullish bar. The KST and TSI indicators has been in a bullish setup. On a 75-minute chart, the index closed above the moving average ribbon along with the MACD line above the zero line. The MA ribbon is in an uptrend, is a bullish sign. The index needs to trade above the 35400-543 zone for a bullish trend to continue. Overall, trend is in favour of bulls as the index is trading above it's 20, 50 and 100DMA.

The Strategy for the day

The Bank Nifty closed higher with a stronger move. It is near to the previous swing high. A move above 35400-543 is positive, and it can test 35800. Maintain a stop loss at 35275. Above 35800, continue with a trailing stop loss. But a move below 35127 is negative, and it can test 34875. Maintain a stop loss at 35275.

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