Nifty Bank bounces back after retesting 200-DMA. Can it cross 46K mark?
Nifty Bank bounced back on Tuesday after falling over 1% in the previous trading session.
The index rallied more than 600 points to close at 45,502. The Nfty50 closed with gains of over 100 points above 21,700. PNB, ICICI Bank, Bank of Baroda, and IDFC First Bank led the gains, while some profit-taking was seen in Bandhan Bank as well as AU Small Finance Bank.
The index bounced back after retesting 200-DMA placed at 44,897 on the daily charts for the fourth consecutive day. It has been trading below the 50-DMA for the past 18 sessions.
The momentum helped reclaim 45,000-45,500 in trade today and the next immediate resistance level is placed at 46,000-46,100, suggest experts.
«The bulls made a strong comeback, defending the critical support level of 44,800, which now serves as a cushion for further upside,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said.
“The index remains in a buy mode as long as the mentioned support holds, and any dips should be utilized to add long positions,” he said.
“The immediate resistance on the upside is situated at 46,000, where the highest open interest is built up on the call side, indicating a potential target for the bullish momentum,” recommended Shah.
The Nifty Bank index opened higher, and the momentum remained throughout the trading session. It did slip towards 44,800 but quickly recouped losses to retest 45,750 levels in intraday trade.
The index pared gains but still closed above crucial support of 45,500 levels on Tuesday, which suggests that
