Bank Nifty forms Tweezer Top pattern!

Bank Nifty forms Tweezer Top pattern!

by 5paisa Research Team Last Updated: May 17, 2023 - 12:17 pm 632 Views
Listen icon

Bank Nifty ended Tuesday session with a loss of 0.38%. 

On Tuesday it opened at level of 44144.15 which was almost an identical high when compared to its prior trading session as a result it has formed a pattern known as Tweezer Top. The pattern is a signal of weakness. As the index formed an open high candle, it is also a weaker signal. The index reacted from the upper Bollinger band. Tuesday fall, with a higher volume than the last three days, can be termed as a distribution day. The RSI has formed a negative divergence. The MACD and the signal line are moving in together, and the histogram at the zero line shows a lack of bullish momentum. After two bullish bars, the Elder impulse system has formed a neutral bar. The KST indicator is about to give a bearish signal. The index has declined into the weakening quadrant on RRG charts, as both momentum and relative strength lines are below 100. The index is trading above all short-term moving averages. 

The index has to close below the level of 43815 for a confirmation of the Tweezer Top candle's bearish implications and a reversal signal. In any case, it closes below the level of 43666; it can test the level of 43062, which is 20DMA. The weekly closing is very important for the future direction. If it closes below 43078, a lower low will form, and the reversal will confirm. Avoid taking aggressive long positions and wait for confirmation for the beairsh implications for short positions. 

Strategy for the day  

The Bank Nifty has given early signs of reversal. A move above the level of 43980 is only positive, and it can test the level of 44110. Maintain a stop loss at the level of 43860. But, a move below the level of 43860 is negative, and it can test level of 43666. Maintain a stop loss at the level of 43980. Below the level of 43666, continue with a trailing stop loss. 

Share Market Today

How do you rate this article?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage


About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


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

By proceeding, you agree to the T&C.

Latest News
What you must know about Accent Microcell IPO?

Accent Microcell Ltd is a 11 year old company, incorporated in the year 2012 to produce high-quality cellulose-based excipients. These excipients find application in the pharmaceutical, nutraceutical, food, cosmetic and other industries.

Electric Two-Wheeler Sales Surge in November: A Close Examination

In November, sales of electric two-wheelers witnessed impressive growth, totaling just over 91,000 units. This marks a nearly 20% increase compared to the same month last year and a 22% rise from October.

HUL Strategically Divides Beauty and Personal Care for Modern Beauty Brand Challenges

Hindustan Unilever Ltd (HUL) is making strategic moves to enhance its competitiveness in the beauty and personal care market. Starting April 1, the company will split its beauty and personal care division into two separate entities—beauty and wellbeing (B&W) and personal care (PC).