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The Nifty Bank closed in the green for the second consecutive day on Monday tracking positive global cues.

The Nifty Bank closed 350 points higher at 47,924 while the Nifty50 gained 189 points to close at 22,336.

The Nifty Bank witnessed value buying at lower levels for the second consecutive day in a row, but it failed to hold on to the 48,000 mark. The index is likely to face stiff resistance around 48K marked by the highest Call open interest (OI), suggest experts.

ICICI Bank, SBI, Axis Bank, PNB, and Bandhan Bank were among the top index gainers while selling was seen in IndusInd Bank, AU Small Finance Bank and HDFC Bank.

“The BankNifty index exhibited continued bullish strength as it witnessed follow-up buying from lower levels. Currently, it is approaching a crucial resistance level around 48000, marked by the highest open interest on the call side,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said.

“A decisive break above this level is anticipated to trigger further short covering moves,” he said.

“Meanwhile, immediate support lies at 47600-47500 levels, suggesting that any dip towards this support zone could present a buying opportunity,” recommended Shah.

The Nifty Bank opened higher, but it witnessed a marginal dip that took the index towards 47600 levels. However, it recouped losses to reclaim 48000 towards the close of the trade.

The index pared gains as traders preferred to book profits at higher levels. On the downside, strong support is visible at 47000.

“Bank Nifty pared opening gains in the first hour of the trade, filling its opening gap on the hourly chart. For the better part of the day, the market continued trading sideways,” Bhavik Patel- Senior Research Analyst, Tradebulls Securities, said.

“It was two days on the trot when Bank Nifty closed positive. Next hurdle or resistance for Bank Nifty comes around 48250-48460,” he said.

“Major support for Bank Nifty is shifting higher from 46500 to 47000 which can be classified as new support as it also coincides with highest open interest on weekly basis,” highlighted Patel.

“The immediate support can be attributed near 47600 which is today’s low and 20 DEMA on a daily scale,” he said.

“Closing above its important moving average of 5 and 20 DEMA on daily chart also suggests a shift in sentiment from bearish to bullish and any change or reversal in trend is only expected if Bank Nifty breaks down below 47000,” added Patel.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

  • Published On Apr 23, 2024 at 08:27 AM IST

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