Will Bank Nifty continue its outperformance?

resr 5paisa Research Team

Last Updated: 14th December 2022 - 03:13 am

Listen icon

Bank Nifty registered a 2.96% gain during the last week and it outperformed the Nifty index.

 With this strong move, it has managed to close above the prior swing high and at the week's high, which reflects strength in the move. During the last four weeks, it gained by 4359 points or 12.57%. On a daily chart, the upper Bollinger band resistance is placed at the level of 39494, which shows it has the potential to test this level. The weekly upper Bollinger band is at 39121, which it has almost tested on Friday. The RSI closed above the 80 zone, at an extreme level. If the RSI declines below the 76-70 zone, we may get reversal signals. The MACD histogram is flattened. It has formed a hanging man candle at the new swing high, which is showing some caution and exhaustion of the trend. The Elder impulse system has formed strong bars. The index is trading 10.64% above the 50DMA and 5.02% above the 20DMA. There are no bearish or weaker signs currently available. The overbought cannot be considered as a bearish sign. A retracement will cool off the overbought condition. For now, only a slow momentum is a worry. Continue with the trend with a prior low as a stop loss. Only a close below the prior low will give us the weaker signals.

Strategy for the day

The Bank Nifty closed at the day high, and it is sustaining above the prior swing high. A move above 39089 is positive, and it can test 39370. Maintain a stop loss at level of 38950. Above 39370, continue with a trailing stop loss. But a move below 38950 is negative, and it can test 38780. Maintain a stop loss at 39042. Below 38780, continue with a trailing stop loss.

FREE Trading & Demat Account
Open FREE Demat Account with endless opportunities.
  • Flat ₹20 Brokerage
  • Next-gen Trading
  • Advance Charting
  • Actionable Ideas
+91
''
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

Indian Stock Market Related Articles

Top Energy ETFs in India - Best Funds to Invest

by 5paisa Research Team 11th Dec 2024

Top 5 Nifty 50 ETFs in India by Returns

by 5paisa Research Team 11th Dec 2024

Top Multibagger Stocks for the Next 5 Years in India

by 5paisa Research Team 4th Dec 2024

Top Growth Stocks Trading at a Discount

by 5paisa Research Team 4th Nov 2024

Best Gold ETFs in India

by 5paisa Research Team 22nd 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.

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.

+91

By proceeding, you agree to all T&C*

footer_form