Banknifty Takes Breather with Bearish Belt Hold Formation

Banknifty Takes Breather with Bearish Belt Hold Formation

by 5paisa Research Team Last Updated: Apr 24, 2023 - 09:11 am 814 Views
Listen icon

The Banknifty ended Friday's session with a loss of 0.36% and on the weekly chart it has formed a candlestick pattern which resembles to a bearish belt hold pattern. The bearish belt hold pattern formation was owing to Monday's open=high and thereafter, the price action remained capped for entire week within the high and low of Monday's session. 

On the weekly scale, Banknifty has formed higher high and higher low, so the formation of bearish belt hold, after a three consecutive week of gains could be see as a temporary breather. Meanwhile, the index is trading comfortably above the 20WMA. 

On the daily chart, the index breached it's immediate support of 5EMA on intraday basis, but recovery from lower levels helped index to close above the 5EMA. With this, it has taken support at 5EMA for the last three days. Technically, the index is showing a short-term top. Only above the level of 42604, it is likely to resume the uptrend. But, if it closes below the level of 42096, it will be negative. On an hourly chart, the index has closed below the moving average ribbon along with the MACD line below the zero line and signal line, which is short-term negative. The daily RSI is showing a downward move in the strong bullish zone. The MACD histogram also shows a decline in bullish momentum. The Stochastic oscillator has already given a sell signal in an extremely overbought condition. In any case, if the index declines below the Monday low of 41799, it will be negative. The Anchored VWAP of 41523 will act as immediate support. Below this, it can test 40911, which is 20DMA and sloping trendline support. For now, stay cautious on the long side. 

Strategy for the day 

The Banknifty took support at the level of 42050 on a sharp decline on Friday. A move above the level of 42126 is positive, and it can test the level of 42330. Maintain a stop loss at the level of 42050. Above the level of 42490, continue with a trailing stop loss. But, a move below the level of 42050 is negative, and it can test the level of 41855. Maintain a stop loss at the level of 42126. Below the level of 41855, 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.
Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
52-Week High Stocks: Bharti Airtel, Mahindra & Mahindra, and More; Do You Own Any?

Bharti Airtel has been in the spotlight after announcing a definitive agreement with Axiata Group's Dialog to merge its operations in Sri Lanka.  This has led to Airtel’s stock to surge to a fresh 52-week high, reaching a price of ₹1280.0.

Dynacons Systems & Solutions Share Price Soars 83% in 15 Sessions, Surges 340% in a Year

Dynacons Systems & Solutions, an Indian-based IT company, experienced a substantial surge in its share value with shares rising 83.50% in 15 trading sessions and 340% in one year, driven by heightened investor sentiment follow

8 FPIs Settle Alleged Adani Stock Violations with SEBI

More than half a dozen foreign portfolio investors (FPIs) that owned substantial stakes in Adani Group firms are looking to settle securities violation matters with markets regulator SEBI, said people familiar with the matter.