Bank Nifty is down but not out!
![Bank Nifty is down but not out! Bank Nifty is down but not out!](https://storage.googleapis.com/5paisa-prod-storage/files/2022-11/Bank%20Nifty_16.jpg)
![resr resr](https://storage.googleapis.com/5paisa-prod-storage/files/2022-01/author.png)
Last Updated: 10th December 2022 - 04:33 pm
Bank Nifty started the fresh week on a fragile note, however, it found support near the 42200 mark and recovered smartly.
Despite the recovery, it ended the day with a modest loss of 0.21%. It traded in just 186 points range during the day and took support at 8 EMA and formed a very small candle, since the closing was greater than the opening level it formed a bull candle. There are no major bearish technical developments that occurred on Monday. It was a dull day of trade as there was no decisive move. The index traded within the moving average ribbon. After two consecutive negative candles, Monday's close might create some suspicion, but there is no confirmed weakness. For a confirmed weakness, Bank Nifty needs to decisively close below the level of 42200 for a short-term reversal.
The MACD line has moved below the signal line and the RSI has declined further while the momentum has completely waned. On the hourly chart, the index has formed all the long-legged candles. For now, only a close below 42200 on an hourly basis will give downside possibilities and above 42400 will be positive for the index. The index is trading above the short-term moving average of 5 and 8EMA and both the moving averages are trending up and in the desired sequence.
Strategy for the day
Monday was a dull day for traders as Bank Nifty moved in a stipulated range. However, the key takeaway was it managed to hold on to the immediate short term. A move above the level of 42400 is positive and can test the level of 42589. Maintain a stop loss at the level of 42210. Above 42589, continue with a trailing stop loss. But, a move below 42200 is negative and can test the level of 41960. Maintain a stop loss at the level of 42400. Below 41960, continue with a trailing stop loss.
Trending on 5paisa
Discover more of what matters to you.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.