A perfect set-up for Bank Nifty to extend its gains! Know the key levels for the day!

The price structure looks bullish for now as the index has formed a sizeable bullish candle and decisively, closed above the 20-DMA.

Monday’s trading session turned out to be a marvellous one for Bank Nifty as it closed with gains of over 1 per cent i.e. above the sloping trendline resistance and marked its highest closing level after June 13.  

The price structure looks bullish for now as the index has formed a sizeable bullish candle and decisively, closed above the 20-DMA. It has also outperformed the frontline benchmark index. The daily 14-period RSI has closed above the zone of 50, which is a positive sign. The index cleared the 21-EMA resistance decisively. On an hourly chart, the moving average ribbon is in an uptrend and the MACD line, which is above the zero line, is also a positive sign. Be with a positive bias as long as it trades above the level of 33,610.  

Bank Nifty closed above the June 13 gap day high. A move above 33,970 is positive, and it can test the level of 34,150. However, a move below 33,610 is negative, and it can test 33,400 levels. On an hourly chart, the moving average ribbon is in an uptrend and the MACD line is above the zero line, which is also a positive sign. Be with a positive bias as long as it trades above the 33,610 level.