Nifty Bank eyes fresh record highs in March; should you buy now or on dips?
Nifty Bank rose for the sixth day in a row on Wednesday pushing the index towards 48,000. It closed 384 points higher at 47,965 while the Nifty50 rose 117 points to close at 22,474 – a fresh record high.
Banking stocks are leading a rally in the Nifty50 and if the momentum continues, the Nifty Bank is on track to hit fresh record highs and dips should be used to go long.
Kotak Mahindra Bank, Axis Bank, Bank of Baroda and ICICI Bank led the gains while some profit-taking was seen in Bandhan Bank, AU Small Finance Bank, and SBI.
“Bank Nifty has been the leader during this rally, and we expect the momentum to continue. Dips towards 47,800 – 47,680 should be used as a buying opportunity,” said Jatin Gedia – technical research analyst at Sharekhan by BNP Paribas.
“The Bank Nifty is likely to retest the previous all-time high of 48,636,” he said.
The Nifty Bank opened lower, but it quickly recouped losses to head higher towards the 48,000 mark. It hit an intraday high of 48,161 but failed to hold the momentum.
The index witnessed marginal profit taking, which pushed it below the 48K mark towards the close, but the structural trend still remains to be on the upside, suggested experts.
“The Bank Nifty index remains under the influence of a bullish trend, approaching its all-time high levels with a marginal gap of 600 points,” said Kunal Shah, senior technical & derivative analyst at LKP Securities.
“The ongoing bullish sentiment is evident, backed by a robust support zone established at 47,500-47,400, serving as a
