Will Bank Nifty continue its upward march? Or negative global cues will halt it's march forward, know here!

Will Bank Nifty continue its upward march? Or negative global cues will halt it's march forward, know here!

by 5paisa Research Team Last Updated: 2022-07-12T11:08:37+05:30

On Monday, the Bank Nifty closed with gains of nearly 1% and thereby, outperformed the frontline gauge by a wide margin. On the daily chart, the index formed a sizable bullish candle with almost open and low being identical, this in technical parlance is known as Opening Bullish Marubozu and moreover, it closed above the prior bar high. With this, it has negated the prior day's hanging man implications. The index decisively closed above the 78.6% retracement level of the prior downswing. It has also closed decisively above the 50 and 100DMA. Currently, it is trading 3.54% above the 50DMA. Once this key medium-term moving average enters an uptrend, the index may cross the prior swing high, which is a possibility. Now, the 200 DMA is just 2.84% cent away. There is a very strong momentum shown by the histogram. The weekly MACD line is about to move above the signal line for a medium-term bullishness. The Daily RSI has moved into the strong bullish zone. The Anchored VWAP is at 35811, which is plotted from the lifetime high on a daily scale. The TSI and KST indicators are in a bullish structure. The Elder impulse system and HeikenAshi candle formed a series of bullish candles. Currently, there is no weakness visible. Continue your long positions with a strict stop loss.

The Strategy for the day

The Bank Nifty continued its outperformance vis-a-vis Nifty and it has formed a sizable bullish candle. It is trading above its key moving average like 20, 50 and ,100DMA. A move above 35475 is positive, and it can test 35690. Maintain a stop loss at 35400. Above 35690, continue with a trailing stop loss. But a move below 35072 may lead to the profit booking and can test 34920. Maintain a stop loss at 35190.

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