Stock market traders are tired and confused with how the markets are behaving these past few weeks.
Both indexes, Nifty and Bank Nifty, have been trading in the range for the past five weeks.
Nifty is struggling in the range of 17,700-18,200, while Bank Nifty is in the range of 41,700-43,200.
Bank Nifty was trading strong on the back of HDFC Bank, also a Nifty 50 stock, which weights 27% on the Bank Nifty index.
Index witnessed a rally in the past couple of days, but bulls once again had the last laugh at the resistance zone.
The index is trading in the symmetrical triangle pattern on the chart with the breakout level at 43,100.
In the first 30mins, the index showed strength by breaking above the key psychological level of 43,000 to hit the high of 43,078. But it's at a wit's end as it reversed from the resistance zone.
The failure of a breakout may prove to be a disaster for bulls as the lower band is placed at 42,000 levels, a 1,000 points downside from here.
Bulls need to break 43,100 for any up move from here on, or it will be bears who capitalize in the truncated week.
At present, the Bank Nifty index is trading down 0.2% at 42,750 levels.
I'll share more on his trend on my Telegram group. If you're interested in being part of my charting journey as I share how to create wealth from profitable trade setups, join my telegram channel - Fast Profits Daily.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...
Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.
Equitymaster requests your view! Post a comment on "How to Trade the Bank Nifty Index this Week". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!