NSE to Launch F&O Contracts on 45 New Stocks Starting November 29th
Bank Nifty's Impressive Recovery: How Traders Can Capitalize on this Opportunity
Last Updated: 15th May 2023 - 09:26 am
Bank Nifty almost moved near to its lifetime high, a little over 300 points away from its lifetime high.
After opening with a negative gap, it recovered over 400 points from the day's low and formed a strong big bull candle.
Going forward, in the most bullish case, a move above the previous high of 44152, can extend the upmove towards levels of 44544. As long as it sustains above the level of 42780, it can test the level of 44943 sooner or later. The 20-week average began its uptrend; the index closed at the upper Bollinger band. The Weekly RSI shifted its range into the strong bullish zone. Weekly MACD is also showing strong bullish momentum. But, daily MACD shows stagnated momentum for the last one week. All moving averages are in an uptrend. In a most bear case scenario, a close below Friday's low, 43347, will signal the reversal. A close below this means it can test the recent minor low of 42582. Only a close below this means the trend has reversed, as it forms a lower low.
Monday's close is crucial for a directional bias. Stay calm till the direction is clear.
Strategy for the day
The Bank Nifty closed with gains of 0.73% on Friday and it had formed a strong bullish candle as it recovered over 400 points from the day's low. Going forward, a move above the level of 43800 is positive for the index, and it can test the level of 44155. Maintain a stop loss at the level of 43680. Above the level of 44155, continue with a trailing stop loss. But, a move below the level of 43680 is negative, and it can test the level of 43420. Maintain a stop loss at level of 43800. Below the level of 43420, continue with a trailing stop loss.
Trending on 5paisa
Discover more of what matters to you.
Indian 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.