Bank Nifty forms a bearish belt hold candlestick pattern; know the significant support level to watch out for!

Bank Nifty has formed a bearish candle and took support at the MA ribbon.

Bank Nifty found resistance around the 20-DMA and thereafter, it declined 400 points from the day’s high before settling with a modest gain of over half a per cent. The index has formed a bearish belt hold-like candlestick pattern.  

On Monday, Bank Nifty recorded the lowest volume in the recent time. The open interest slipped 12.96 per cent, indicating that the rollovers are picking up and unwinding is taking place in the current month’s series. The MACD line moved above the signal line, which is a positive sign. However, it has to continue its upward momentum. On the lower timeframe chart, the index took support on the moving average ribbon. In any case, if the index declines below Monday's low of 33,735, it will be negative. Instead, trade with a small positive size. Meanwhile, the volatility might increase before the monthly expiry. 

Bank Nifty has formed a bearish candle and took support at the MA ribbon. A move above 33,942 will be positive, which can test the level of 34,198. However, a move below 33,786 is negative that can test the 33,589 level.