The Nifty Bank index snapped a four-day losing streak and closed with gains of over 1% on Thursday. The momentum helped the index to break out from the critical resistance level of 48,000.
The breakout confirms the resumption of the uptrend which could take the index towards 49,500-50,000 in the short to medium term, suggest experts.
The index rose 490 points or over 1% to close at 48,195 on Thursday. The Nifty50 index rose more than 141 points to close at 21,658.
The rally in the Nifty Bank index was led by gains in AU Small Finance Bank, IndusInd Bank, Bandhan Bank and Axis Bank while some selling was seen in Kotak Mahindra Bank and SBI.
“The Bank Nifty witnessed a robust comeback by the bulls, decisively surpassing the hurdle at 48,000 on a closing basis. This breakthrough confirms the resumption of the uptrend, indicating a potential move towards the target of 50,000,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said.
“The bullish crossover in the RSI further supports the positive momentum. In case of any pullback, the index has a solid support at 47,700, serving as a cushion for the bulls,” he said.
Levels To Track
The Nifty Bank opened higher and built on the momentum to touch an intraday high of 48,281. It saw marginal selling pressure at higher levels but it closed with gains of nearly 500 points at 48,195.
Bulls could remain in control of Nifty Bank as long as it trades above 48000. A close below the same could trigger some profit-taking.
“Bank Nifty has held on to the support of the 20-day moving average (47920) and started the next leg of up move,” Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said.
“Until 48,000 is not breached on the downside we can expect the rally to continue. On the upside we expect 49500 from a short-term perspective,” he said.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
