Nifty Bank closes below 47,000; forms long-legged doji candle on daily charts
Nifty Bank index closed in the red for the second consecutive day on Thursday tracking mixed global cues.
The banking index fell nearly 100 points and formed a Long-Legged Doji kind of candlestick pattern on the daily charts. The Nifty50 rose over 160 points to hit a fresh record high.
The Nifty Bank underperformed the benchmark index. HDFC Bank, SBI and Kotak Mahindra Bank witnessed some selloff while buying was seen in Axis Bank, Bandhan Bank, and ICICI Bank.
It failed to hold on to 47,000 levels towards the close of the trade. It formed a long-legged doji candle which suggests indecisiveness among the bulls and bears.
It is characterized by the small real body which is the difference between the opening and the closing price, and long upper and lower shadows. The bank index opened at 46,934 and closed at 46,919 – but it recouped losses towards the close of the trade.
«The Bank Nifty bulls made a strong comeback, leading to a sharp recovery in the index from lower levels,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said.
“The formation of a long-legged doji candle on the daily chart is considered bullish, suggesting potential further upside towards the 48000 mark,” he said.
“The index finds support at 46500, where aggressive put writing is evident. The bullish sentiment remains intact unless there is a decisive break below this support level,” added Shah.
What should investors do?
The Nifty Bank opened lower and drifted lower as the session progressed to test its crucial support
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