The Nifty Bank closed in the green for the sixth day in a row to close above the 47,000 level on Tuesday. The index rose over 500 points to close at 47,094.
The Nifty50, on the other hand, hit a fresh record high, ending a tad below 22,200.
HDFC Bank, Axis Bank, Kotak Mahindra Bank, and IndusInd Bank led the gains while some profit booking was seen in Federal Bank, Bandhan Bank and AU Small Finance Bank.
The Nifty Bank index closed above the 50-DMA placed at 46,807 on the daily chart for the first time since January 17, 2024, which is a positive sign for the bulls.
The index reclaimed the 47,000 level amid strong momentum seen in the benchmark indices. The next target is seen around 48,000. Hence, traders can look to buy the dip.
“Bank Nifty was clearly the leader today (Tuesday) with major contributions coming in from the heavyweight HDFC Bank. We expect the Bank Nifty to continue with the momentum and target levels of 48,600,” said Jatin Gedia – technical research analyst at Sharekhan by BNP Paribas.
The Nifty Bank, which opened marginally lower, picked up momentum during the day to reclaim the 47,100 level. The index saw marginal selling pressure around higher but managed to close above 47,000.
On the downside, the immediate support for the index is placed at 46,700 levels, suggested experts.
“The BankNifty bulls maintained their dominance, closing above the 47,000 level, signalling a strong buy mode. Immediate support is now established at 46,700, marked by fresh put writing,” said Kunal Shah, senior technical & derivative analyst at LKP Securities.
“The index is anticipated to reach the short-term target of 48,000, with any dip viewed as a buying opportunity,” he said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
