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Bank Nifty forms an inside bar; these are the key levels to watch out for the day!
Last Updated: 28th October 2022 - 10:21 am
The Bank Nifty ended the final trading session of the October F&O series expiry with gains of 0.43%.
Though it ended the session with gain, the candle formation was not that encouraging as the close of the day was lower than the opening of the day and furthermore, the price traded within the range of October 25, as a result, it has formed an insider bar on the daily chart. There are no major technical developments apart from the inside bar formation, as it traded within the previous day's range. October 25 range of 41021-531 will act as major support and resistance for the weekend trade. Either side breakout will result in a sharp move. As long as it trades above the 40945-41021 zone, it better be with a positive bias. Only below this zone expect some weakness towards 20DMA.
Currently, the 20DMA is in an uptrend, and the Bollinger bands are expanding. Even on the hourly chart, the index is above the moving average ribbon, and it is in an uptrend. Unless it forms a lower low, and declines below the level of 40945, the index holds the trend strength. A close above the level of 41531 will lead to a new all-time high. Trade cautiously within the range and wait for a decisive on either side for a directional trade.
Strategy for the day
Bank Nifty formed an inside bar. It has not given any decisive signal. A move above the level of 41365 is positive and can test the level of 41511 on the upside. Maintain a stop loss at the level of 41220. Above the level of 41511, continue with a trailing stop loss. But, a move below the level of 41220 is negative, and it can test the level of 41020. Maintain a stop loss at the level of 41345. Below the level of 41020, continue with a trailing stop loss.
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