The Nifty Bank snapped a 3-day winning streak and closed in the red after hitting fresh record highs in intraday trade on Wednesday.
The index closed 177 points lower at 46,834. It had hit a record high of 47,259. The Nifty index closed 82 points higher at 20,937.
The fall in the Nifty Bank index was led by losses in Axis Bank, AU Small Finance Bank, ICICI Bank and Federal Bank. Buying was seen in IDFC First Bank, HDFC Bank, and SBI.
The Nifty Bank underperformed the benchmark index as investors preferred to book profits in the banking names after a recent rally.
“Bank Nifty also opened on a positive note. However, it witnessed profit booking at higher levels and closed in the negative,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
“The Bank Nifty is now in a consolidation mode, which can happen in the range of 46,400 – 47,200 over the next few trading sessions,” he said.
Levels To Track
The Nifty Bank opened on a strong note to hit a fresh record high of 47,259. However, it failed to hold on to the momentum as traders preferred to book profits.
The index closed near its lowest point of the day. For Thursday, 46,400 will act as a crucial support for the index and on the upside resistance is seen at 47,250.
“The Bank Nifty index experienced profit booking at higher levels in anticipation of the upcoming key RBI policy event. Despite this, the overall market sentiment remains bullish,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
“It is advisable to adopt a buy-on-dip strategy, maintaining a positive outlook as long as the index stays above the critical level of 46,400,” he said.
“The immediate hurdle is positioned at 47,250, and a successful breach beyond this level is anticipated to pave the way for further upside momentum towards the 48,000 level,” added Shah.
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