Top Growth Stocks Trading at a Discount
Bank Nifty bulls are back into their rhythm!
Last Updated: 13th December 2022 - 06:09 pm
On Wednesday, for the second consecutive day the Bank Nifty formed an open=low candle. Also, it formed a strong bullish bar with a higher high and higher low as compared to prior trading session bar. As a result, the Bank Nifty closed above the prior day's high and filled the Monday gap. It has also retraced 61.8% of the last three days' high and low.
The index has formed a higher high candle which is a bullish sign. It has also managed to close above the 8EMA decisively. The MACD histogram increased on the bearish side. The RSI is below its 9 periods average. The Bank Nifty is trading 2% above the 20DMA. These all are positive signs. But the indicators are weakening. The KST has given a fresh sell signal. The TSI is also in bearish mode. The Elder impulse system has formed neutral bars. Bank Nifty futures has registered the highest volume in the day and shows that there is short covering and rollovers are in swing. On 75-minute chart, the index closed above the moving average ribbon, and the MACD line is also above the zero line, which is another bullish bias. For now, stay cautiously positive with a strict stop loss for the short-term position.
Strategy for the day
Bank Nifty has registered an open=low candle for the second straight day and formed a higher high and higher low candle, which is bullish. Hence, a move above 39068 is positive, and it can test level of 39372. Maintain a stop loss at the level of 38882. Above level of 39372, continue with a trailing stop loss. But a move below the level of 38882 is negative, and it can test the level of 38680 on the way down. Maintain a strict stop loss at 39072. Below 38680, continue with a trailing stop loss.
Trending on 5paisa
Discover more of what matters to you.
Indian Stock Market Related Articles
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.