Top Growth Stocks Trading at a Discount
Will Bank Nifty continue to outperform; find out here!
Last Updated: 25th October 2022 - 09:54 am
On the eve of the Muhurat Trading session, Bank Nifty opened with a massive gap-up of over 550 points. It went on touch an intraday high of 41427, thereafter, the index witnessed profit booking as it settled nearly 120 points lower from its intraday high.
But for the day it recorded staggering gains of 1.28%. With this strong up move, it closed above the Bollinger bands. The 20 DMA is in an uptrend, and Bollinger bands started expanding, showing the upside targets are intact. The index is also near the previous highs. The Relative Strength is in a strong bullish zone. The MACD line is rising, the histogram shows increased bullish momentum and there are no divergences visible now. A strong bullish candle in the Elder impulse system is also a positive factor. The index is currently trading 10.57% above the 50DMA. The RRG RS is strongly at 103.1, and the momentum is at 100.59. All the PSU and private sector banks are in strong momentum. Though the index has formed a small-bodied bear candle on the daily chart as the closing was lower than the opening level, it has maintained its rhythm of higher high and higher low formation. Hence, be with a positive bias for now.
Strategy for the day
Bank Nifty outperformed the frontline index and it is leading the broader market. Furthermore, it has maintained its rhythm of higher high formation as compared to its prior trading session. A move above the level of 41315 is positive and can test levels of 41800 on the upside. Maintain a stop loss at the level of 41160. Above the level of 41800, continue with a trailing stop loss. But, a move below the level of 41050 is negative for the index and can test the level of 40750. Maintain a stop loss at the level of 41160.
Trending on 5paisa
04
5paisa Research Team
Discover more of what matters to you.
Indian Stock Market Related Articles
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.