The Nifty Bank index closed lower on Friday but on a weekly basis, it rose by over 1% in line with the trend seen in benchmark indices.
The index rose from 47,491 on 22nd December 2023 to 48,292 on December 29, 2023, which translates into an upside of 1.69% on a weekly basis.
However, the index snapped a 3-day winning streak and closed lower on Friday. It fell by more than 200 points to 48,492. The index hit a record high of 48,636.45 during the week.
The fall in the index was led by losses in SBI, ICICI Bank, Bank of Baroda, and IndusInd Bank. Some buying was seen in Bandhan Bank, Federal Bank, and HDFC Bank.
Profit-booking at higher levels on the last trading session of the week pushed the Nifty Bank index towards its crucial support placed at 48,000 on Friday.
For bulls to regain control, a decisive close above 48,300 is required which could propel the index to a fresh record high.
“Bank Nifty slipped lower, forming a small red-bodied candle on the daily chart. Resistance is situated at 48,300 on the higher end. As long as the index stays below 48,300, the trend could lean towards favoring the bears,” Rupak De, Senior Technical Analyst at LKP Securities, said.
“Moreover, a decisive drop below 48,000 might drive the index below 47,500. Conversely, a decisive move above 48,300 could propel the index towards 48,800-49,000 on the higher end,” he said.
Levels To Track
The Nifty Bank opened marginally lower and gradually drifted lower towards 48,100 zones in the latter part of the day. It faced selling pressure at higher levels, but 48,000 acted as strong support.“Nifty Bank index formed a small-bodied candle on the daily scale as some profit booking was seen from higher zones. However, on a weekly scale, it formed a Bullish candle, and the structure of higher lows is intact from the past five weeks as a larger trend is strong with buy on dips stance,” said Chandan Taparia, Senior Vice President and Analyst-Derivatives at Motilal Oswal Financial Services.
“The index gave the highest ever weekly close and now it has to continue to hold above 48,000 zones for an up move towards its recent life high of 48,636 then 49,000 zones while on the downside support is seen at 48,000 then 47,750 levels,” he said.
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