Bank Nifty's Doji candle
Bank Nifty formed a Doji candle on Tuesday, signaling indecision among buyers and sellers at record highs.
The candlestick has neutralised the immediate bullish outlook, though momentum studies are biased bullish and calls for caution on the part of the bulls, especially if Wednesday's candle closes below Tuesday's low of 45,000. That would confirm a bearish Doji reversal.
Trading strategy: Dip buying and simultaneously selling overhead call options is preferred while the 10-day SMA is trending north.
The candlestick has neutralised the immediate bullish outlook, though momentum studies are biased bullish and calls for caution on the part of the bulls, especially if Wednesday's candle closes below Tuesday's low of 45,000. That would confirm a bearish Doji reversal.
Trading strategy: Dip buying and simultaneously selling overhead call options is preferred while the 10-day SMA is trending north.
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