Nifty Bank fails to close above 48,000; immediate hurdle placed at 48,200: Experts
Nifty Bank bounced back on Thursday but failed to hold on to the 48,000 mark towards the close of the trade.
The index rose 289 points to close at 47,977, while the Nifty50 rallied over 200 points to close above 22,400.
Axis Bank, Kotak Mahindra Bank, and HDFC Bank closed with gains of over 1% each on Thursday, while some selling was seen in Bandhan Bank which fell over 5%, followed by SBI, IndusInd Bank, and Bank of Baroda.
The index recouped losses and closed near an intra-day high. The next big hurdle for the index is placed at 48,200 levels, suggest experts.
«The Bank Nifty witnessed a robust comeback by the bulls, overpowering the bears and orchestrating an intraday surge of 1,000 points,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said.
“The next immediate hurdle for the index stands at 48,200, aligned with the 20-day moving average (20DMA), breaching which could trigger additional short covering towards the 49,000 mark,” he said.
“On the downside, support is established at the 47,600-47,500 zone. As long as this support level remains unbreached, and the bullish sentiment prevails,” recommended Shah.
The Nifty Bank which opened higher built on gains to reclaim 48,000 but failed to hold on to the momentum. The index quickly retested the 47,300 mark before bouncing back.
The index closed near the opening level which essentially formed a Doji kind of candle on daily charts suggesting a tussle between the bulls and the bears.
»It was a volatile trading session in Bank Nifty with
