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Indian Market
Bank Nifty: Adopt a cautious approach!
5paisa Research Team
15th December 2022 - 03:14 am
Bank Nifty relatively outperformed the frontline gauge as it closed in positive terrain, but, erased most of the initial gains.
On the daily chart, it has formed a bearish candle as close was lower than open, however, it has maintained its rhythm of higher high and higher low formation on the daily chart. That said, it failed to sustain above the crucial resistance level of 41840. The efforts to move higher were in vain because of the fierce selling pressure in the last leg of the trade. But, it has managed to close above the previous day's high.
There are no weaker signals available currently, in the same breath we would say the upside seems to be capped. Even on the hourly chart, the index is still above the moving average ribbon and no weaker signs are available now. In any case, if the index declines below the level of 41530, we may get short-term weakness signals. Generally, after a tight-range breakout, the price moves impulsively. But this is clearly missing in the banking index as of now. The momentum has not increased though the price is moving higher. Adopt a cautiously positive approach for now.
Strategy for the day
Bank Nifty closed positive but erased its initial gains. It formed a bearish candle on the daily chart, but it continues with the formation of higher high and higher low. It is still above the hourly, moving average ribbon. A move above the level of 41810 is positive and can test the level of 42055 on the upside. Maintain a stop loss at the level of 41705. Above the level of 42055, continue with a trailing stop loss. But, a move below the level of 41700 is negative, and it can test the level of 41445. Maintain a stop loss at the level of 41810. Below 41445 continue with a trailing stop loss.
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