Banknifty forms a Bullish Engulfing pattern!

Banknifty forms a Bullish Engulfing pattern!

by 5paisa Research Team Last Updated: Feb 28, 2023 - 09:56 am 872 Views

The Banknifty rescued the frontline indices from a major fall as Banknifty advanced 1%. Banknifty closed near the days high and it formed a bullish engulfing pattern on the daily chart and it closed above the 200EMA. Interestingly, the RSI bounced from the 30 levels to 37.77. On an hourly chart, it closed above the prior minor high and registered a double bottom pattern. It also formed a higher low on the hourly chart. These are the short-term positives for the index. Furthermore, it has closed above the 5EMA. In any case, a close above the level of 40472, will further strengthen the bull power. Monday's strong move of 1% reduced the bearish momentum. Going forward, the Banknifty may face resistance at 20DMA which stands at the level of 40993. Above this, expect the index to test the prior swing high and the 50DMA. On the downside, a close below 200EMA again will resume the downtrend, and a close below 200DMA which stands at the level of 39250 will confirm the further downside in an impulsive way. All the Banknifty components closed with gains is another positive sign. At least in the near term avoid aggressive short position. 

Strategy for the day 

The Banknifty gained 1% on Monday and it formed a bullish candle as a result it has showed the first signs of reversal on the daily chart. Going forward, a move above the level of 40363 is positive, and it can test the level of 40555. Maintain a stop loss at the level of 40230 for long positions. Above the level of 40555, continue with a trailing stop loss. Avoid short positives for the day as we are anticipating a trend reversal on the basis of formation of bullish engulfing pattern and as long as, the low of bullish engulfing pattern is protected avoid short position. 

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
Account belongs to

By proceeding, you agree to the T&C.

Latest News
Inspire Films IPO GMP (Grey Market Premium)

The ₹21.23 crore IPO of Inspire Films IPO comprises entirely of a fresh issue with no offer for sale (OFS) component in the IPO from promoters and early shareholders.

  • Sep 21, 2023
What you must know about Updater Services IPO?

Updater Services Ltd, was incorporated in the year 1990 to offer facility management services and business support services. Updater Services Ltd predominantly operates in the Business-to-Business (B2B) services space offering a range of business services.

  • Sep 21, 2023
Stocks in News Today

Our analysts at 5paisa scan through the financial markets and select the few trending stocks which were in the news and in the limelight for the day. Here is the list of a few trending stocks with their latest News and Updates.

  • Sep 21, 2023