Nifty Bank climbs Mount 51K for the first time in history; what should traders do?
Nifty Bank rallied nearly 2,000 points or over 4% to climb Mount 51K in intraday trade on Monday, tracking exit poll results indicating political stability.
The index rose 1,996 points to close at 50,979. It hit a record high of 51,133.20.
Axis Bank, PNB, SBI, and Bank of Baroda closed with gains of over 5% each while some profit booking was seen in AU Small Finance Bank.
The Nifty Bank witnessed a breakout above key resistance levels ahead of Lok Sabha election results on Tuesday. Experts advise caution before adopting a buy-on-dips strategy.
«Today, Bank Nifty broke through all resistance levels, indicating a strong bullish sentiment driven by the exit poll results,» said Rupak De, Senior Technical Analyst at LKP Securities.
«However, it's advisable to observe the market for the next 2-3 sessions before making any conclusions about adopting a buy-on-dip strategy,» he said.
The Nifty Bank opened above 50,000 but witnessed some profit booking soon after. However, it quickly recouped losses to witness a steady uptrend.
The index remained in momentum throughout the trading session and closed marginally below the record high which suggests that bulls are here to stay.
«Bank Nifty opened at a fresh all-time high and managed to sustain its opening gains throughout the day as exit polls predicted a majority for the NDA,” said Bhavik Patel- Senior Research Analyst, Tradebulls Securities.
“After opening the gap up, no profit booking was seen as the market traded sideways to bullish for the better part of the day
