Top Growth Stocks Trading at a Discount
Bank Nifty forms a doji pattern, what’s the path ahead; let's find out
Last Updated: 12th December 2022 - 01:20 pm
After gaining a little over 3.5% in the last two weeks, the Bank Nifty continued its up-move on Monday albeit slower pace as it added 0.39% on the first trading session of the day.
Interestingly, in the last two trading sessions, the Bank Nifty index has formed an indecisive candle and on Monday the formation resembles a doji pattern and the price traded within the range of Friday’s session, as a result, it formed a Doji+ Inside bar pattern.
The index closed above the upper Bollinger band is showing an extension of a rally. The MACD has given a fresh buy signal as the index sustained the gains. The daily RSI is at 69 and out of the squeeze area. The ADX has been flattened for the last four days. Even after the index has formed two parallel highs, the elder impulse system has formed another bullish bar. The TSI indicator has given a fresh bullish signal.
The PSU Bank and Private sector bank indices are in the leading quadrant in the RRG chart, showing the strength in the sector. Only in case, a close below the level of 40280, with a sizable negative candle and higher volume, we will get a reversal signal. The 8EMA support is placed at the level of 39932. The 20DMA is still in an uptrend. It is better to be with a positive bias.
Strategy for the day
Bank Nifty has formed a doji like candle with an inside bar formation. A move above the level of 40590 is positive, and its candle test the level of 40722 on the upside. Maintain a stop loss at the level of 40390. Above the level of 40722, continue with a trailing stop loss. But, a move below the level of 40390 is negative, and it can test the level of 40220 on the downside. Maintain a stop loss at the level of 40555.
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.