The Nifty Bank bounced back on Tuesday to close above its crucial resistance level of 47,500, tracking positive cues.
The index closed with gains of over 200 points at 47,724. The Nifty50 index moved up more than 90 points to close above 21,400 level.
The rally in the Nifty Bank index was led by gains in Kotak Bank, Bank of Baroda, HDFC Bank, Axis Bank, and SBI.
Volatility index India VIX surged by ~7% to 14.65. Markets recouped losses and gained nearly half a per cent amid mixed cues.
For Nifty50 to surpass the critical hurdle of 21,500, the index would need the support of banking stocks, suggested experts.
“We have reached closer to the hurdle of 21,500 in Nifty and need support from the banking index to make a serious attempt for trend resumption else profit taking would resume,” Ajit Mishra, SVP – technical research, Religare Broking.
“Amid all, traders should avoid aggressive trades in the index and stay focused on identifying opportunities on the stock-specific front,” he said.
Levels To Track
The Nifty Bank started on a positive note, but it quickly pared gains and slipped below 47,500 level. However, it managed to recoup losses and closed with gains of over 200 points from its previous close.
The index surpassed its crucial resistance placed at 47,500 levels, which is a positive sign for the bulls and the next big hurdle is seen around 48,000.
The index opened at 47,576 and hit an intraday high of 47,838. It hit an intraday low of 47,411 in the first half of the session.
“The Bank Nifty sentiment has again turned positive as the index moves back above 47,500. A small green-bodied candle within the previous red candle indicates a potential bullish trend ahead,” said Rupak De, senior technical analyst at LKP Securities.
“Support is established at 47,500 while resistance is observed at 48,000/48,250 on the higher side,” he said.
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