Nifty Bank holds above 50-DMA; fresh longs possible on a breach above 48,000: Experts
Nifty Bank closed lower on Wednesday after closing in the green for the past two trading sessions. The index witnessed selling pressure around 48,000 for the second day in a row.
The Nifty Bank fell 172 points to close at 47,687 while the Nifty50 managed to hold on to 22,200 levels.
ICICI Bank, Axis Bank, Bandhan Bank, and Bank of Baroda were among the top gainers while some selling was seen in IDFC First Bank, HDFC Bank and AU Small Finance Bank.
The Nifty Bank faced some selling pressure around 48,000 and now a close above this crucial resistance level could attract fresh long positions in the index, suggested experts.
«The BankNifty index experienced sideways trading during the weekly expiry day, encountering resistance at the 48,000 level. To sustain the upward momentum, the index must decisively surpass this mark, targeting levels around 48,500,” said Kunal Shah, senior technical & derivative analyst at LKP Securities.
“On the downside, support is positioned at 47,200, presenting favourable buying opportunities on dips toward this level,” he said.
The Nifty Bank opened higher, but it failed to hold on to the momentum. It witnessed selling pressure above 47,900 levels. The index retested 47,500 support before bouncing back in intraday trade on Wednesday.
»Bank Nifty made ‘Bearish Engulfing’ chart pattern on a daily scale suggesting buying momentum fading. 48,000 proved to be decisive resistance as bulls failed to clear that level,” said Bhavik Patel- senior research analyst, Tradebulls Securities.
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