Bank Nifty outperforms Nifty 50 in April; Can the banking index hit 50,000 soon? Analysts weigh in

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Bank Nifty index. Analysts suggest that breaching this level might not be easy, anticipating the level to act as a resistance point in the near term. Also Read: April Market Review: Nifty 50 soars for 3rd straight month, gains 1.2%; metal index top performer Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

believes the 50,000 level is an immediate psychological hurdle, while 50,500 is the next hurdle for Bank Nifty. According to him, 49,000 and 48,700 will act as immediate support levels for Bank Nifty on the downside. Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group is of the view that Tuesday’s price action suggests that the underperformance of Bank Nifty over the Nifty 50 is likely to continue for the next couple of trading sessions which is likely to drag the index lower towards 48,600 odd.

“Erosion of futures premium in the start of fresh derivative series is also suggesting some cool off on long positions for the index. Bank Nifty has also completed its Fibonacci Extension targets of 49,800 and faced rejection from the same. All of these point towards an underperformance for the coming week on the index," Doshi said.

Also Read: Share market in April: M&M, Axis Bank among top 5 gainers as Nifty gains 1%; HCL Tech, Kotak Bank among top 5 losers Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities believes although the index fell short of reaching the 50,000 mark, the overall sentiment remains bullish. “Dips in the index should be seen as buying opportunities, especially with strong support noted around the 49,000 mark, where the highest open interest lies on the put side," Shah said. Meanwhile, the Nifty 50 also touched a record high of 22,783.35 on April