The Nifty Bank index rallied over 1,600 points on Monday, tracking BJP’s exceptional performance in the state elections and strong global cues. The near-term target for the index is placed at 47,000, suggested experts.
The index made a strong bullish candle on daily charts as it rose 1,617 points or 3.6% to close at 46,431. It hit an intraday record high of 46,484. The Nifty50 index rose more than 400 points to close at 20,686.
Strong domestic cues from the state election results where BJP swept Madhya Pradesh, Rajasthan and Chhattisgarh paved the way for the 2024 Lok Sabha elections.
“The Nifty kicked off with a gap up, propelled by BJP’s exceptional performance in the state election. The overall sentiment appears highly bullish, until Nifty fall below 20,400,” said Rupak De, Senior Technical analyst at LKP Securities.
Nifty Bank has risen more than 6% in a week as well as more than 8% in a month.
The rally in the index was largely driven by index heavyweights such as ICICI Bank, SBI, Kotak Mahindra Bank, PNB and IndusInd Bank, etc.
“The Bank Nifty bulls made a strong comeback, surpassing the all-time high levels and dispelling the bearish sentiment,” said Kunal Shah, Senior Technical and derivative analyst at LKP Securities.
“The momentum is anticipated to persist, with robust support identified at the 46,000-45,800 zone, serving as a cushion for the bulls. The ongoing momentum rally has the potential to propel the index higher towards the levels of 47000/48000,” he said.
Levels To Track
Bank Nifty opened a gap on the upside and remained strong throughout the entire day. It touched a fresh all-time high of 46,484 levels. It formed a strong bullish candle on the daily scale.
“Bank Nifty was the leader in today’s upmove as it was up ~3.5% for the day. It has closed at an all-time high and we expect the momentum to continue,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said.
“On the upside, 47000 – 47200 shall be the immediate short-term target and any dip towards 46200 – 46000 should be used as a buying opportunity,” he said.
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(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
