Bank Nifty bulls are in a commanding position, will expiry play a spoilsport?

resr 5paisa Research Team

Last Updated: 14th December 2022 - 01:12 am

Listen icon

The Bank Nifty on Wednesday opened gap down around the levels of 40308.

It formed an open=low candle and thereafter, it went from strength to strength to gain as much as 1.3%, as a result, Bank Nifty formed a sizable bull candle after August 30. It opened with a big 584 points gap down and closed with a 532 points gain. It is just 200 points away from the lifetime high. Other than Axis Bank, all the other index components closed with decent gains. Two heavyweight banks, SBI which marked a fresh all-time high and the market cap of the bank went past the Rs 5 lakh crore mark and HDFC Banks, too witnessed a breakout and it reached levels which were seen in early April. The index opened at the moving average ribbon support and bounced back sharply.

It has not closed above the prior bar low on the hourly chart. The RSI reached the over-bought condition in all time frames. The last hour decline is because of intraday profit booking. Other than that, there is no negative signal on the chart. As the leading indicators are in the overbought condition, the upside potential may be limited. But shorting opportunities are available now.

Strategy for the day

Bank Nifty has formed one of the strongest bars in recent times. A move above the level of 41462 is positive, and it can test the level of 41790 on the upside. Maintain a stop loss at 41246 for a long position. Above the level of 41790, continue with a trailing stop loss. But a move below the level of 41246 is negative, and it can test the level of 40957. Maintain a stop loss at the level of 41400. Below 40957, continue with a trailing stop loss. It's weekly expiry today, so expect some volatility in the second half of the trading session.

How do you rate this article?
Characters remaining (1500)

FREE Trading & Demat Account
+91
''
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

Indian Stock Market Related Articles

Top Growth Stocks Trading at a Discount

by 5paisa Research Team 4th Nov 2024

Best Gold ETFs in India

by 5paisa Research Team 4th Nov 2024

Best Corporate Bonds in India

by 5paisa Research Team 4th Nov 2024

Top 10 Best Government Bonds in India

by 5paisa Research Team 4th Nov 2024

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Want to Use 5paisa
Trading App?