Bank Nifty in a state of flux, here are the key levels to keep an eye on!

resr 5paisa Research Team

Last Updated: 16th December 2022 - 12:45 pm

Listen icon

On Monday, the Bank Nifty almost traded in the previous day's range. It took support around the prior trading sessions low and managed to close at 40904 with a gain of 0.31%. 

On the daily chart it has formed a bullish candle carrying shadows on both the sides. Interestingly, this formation was seen around the 5EMA. There is no change in trend implications as Monday's price actions were limited and within the range of Friday's session. The MACD histogram further declined to almost zero. The RSI is flat at 65.75. The breadth in the index was positive and the rally in the PSU Banks was the standout point. The PSU Bank index gained 2% as the largest public sector bank SBI was up by 1.86%. The Private sector index remained relatively flat. For now, the last two days range is crucial as it would decide the trend in the near term. Breakout on either side will give a decisive move. On Tuesday, the first hour range is also important for the day's directional trade. 

The Strategy for the day 

Bank Nifty formed with a bullish candle, but as the price almost traded within the range of prior trading session, it did not provide much of the clue related to the trend. Going ahead, a move above the level of 41000 is positive, and it can test the level of 41267 on the upside. Maintain a stop loss at the level of 40900. Above the level of 41267, continue with a trailing stop loss. But, moving below the level of 40850 is negative, and it can test level of 40600 on the downside. Maintain a stop loss at the level of 41000 for short position. A move below the level of 40600 would open gates for further downside and hence, it's recommended to continue short position below this level with a trailing stop loss.

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?