Bank Nifty is on cloud nine; here are the key levels to watch out for on Monday!

resr 5paisa Research Team

Last Updated: 10th December 2022 - 03:15 am

Listen icon

Bank Nifty ended with gains of 0.51% on Friday, but it formed a spinning top like candle on the day. 

The index with a gap up and closed below the open and sustained above the previous day's high. Bank Nifty is still trading above all key short-term moving averages. On a weekly chart, it formed a strong bullish bar and decisively closed above the 78.6% retracement level. The index has made a new high, but the RSI is still far below the prior high. It just came out of a squeeze area. In any case, the index opens negatively and closes below the prior day's low, this will be a negative for the sector. 

The RSI confirms the negative divergence and even on the hourly chart, the RSI has formed a negative divergence. The declining KST line is another worrying factor for the index. Currently, it is trading 2.93% above the 20DMA. The Elder impulse system is showing a bullish bias. Both the Nifty PSU bank and Private bank indices are in the leading quadrant and gaining momentum. The PSU Bank index has broken out of a 43-week rectangle base and closed at a new high. The Private bank index is above the prior intermediate swing highs and near the lifetime high. This is a positive sign for the sector. Be with a positive bias, and there are major bearish signals available on the chart. 

Strategy for the day 

Bank Nifty has formed a spinning top-like candle. But on the weekly chart, it has formed a bullish candle, it is better to be with the trend. A move above the level of 40471 is positive, and it can test the level of 40735. Maintain a stop loss at the level of 40340. Above the level of 40735, continue with a trailing stop loss. But, a move below the level of 40340 is negative for the day, and it can test the level of 40071. Maintain a stop loss at the level of 40421. 

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?