Bank Nifty forms a bearish belt hold pattern!
![On Tuesday, the Bank Nifty opening level of the day was the highest point of the day. On Tuesday, the Bank Nifty opening level of the day was the highest point of the day.](https://storage.googleapis.com/5paisa-prod-storage/files/2022-10/Bank%20Nifty_18.jpg)
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Last Updated: 12th December 2022 - 07:06 am
On Tuesday, the Bank Nifty opening level of the day was the highest point of the day. As a result, it led to formation of bearish belt hold pattern on the daily chart and near the prior swing high. For the day, Bank Nifty ended down by 0.44%. It also closed below the prior bar low and below the upper Bollinger band. It filled the Muhurat trading day gap. On an hourly chart, it faced resistance at the channel line. As the index is still above the short-term averages, the trend remains in favour of bulls. The RSI is still above the 60 zone, and the MACD histogram also shows momentum. A decline below the level of 40765 will give a weak signal. The 20DMA is at the level of 39338, which may act as another strong support.
The index declined by 0.44%, with higher volume means it registered a distribution day. On the upside, the index needs to move above the zone of 41422-530 zone with a strong move. Above this zone it can form a new all-time high. Trade cautiously, as volatility is likely to raise its ugly head and the monthly expiry.
Strategy for the day
Bank Nifty also reacted from the channel resistance, and it formed bearish belt hold pattern on the daily chart. Going forward, a move above the level of 41283 is positive, and it can test the level of 41468 on higher side. For the long position maintain a stop loss at the level of 41121. Above the level of 41468, continue with a trailing stop loss. But a move below the level of 41084 is negative, and it can test the level of 40950. Maintain a stop loss at the level of 41190. Below the level of 40950, continue with a trailing stop loss.
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