Nifty Bank rallies 1.6%; short covering may take index to 49,500 next week: Experts
Nifty Bank rose 1.6% for the week ended May 24, 2024, but it failed to close above 49,000. The index rose over 200 points to close at 48,971 while Nifty50 failed to hold on to record highs and closed marginally flat but with a negative bias.
HDFC Bank led the gains followed by Axis Bank, Federal Bank and AU Small Finance Bank while some profit-taking was seen in SBI, IDFC First Bank and Bandhan Bank.
The Nifty Bank edged higher throughout the week to reclaim 49,000 in intraday trade. However, profit-taking at higher levels pushed the index below 49K, but the momentum is likely to continue in the coming week, suggested experts.
«Because HDFC Bank surged closer to the 1,500 mark, Niftybank was able to maintain its momentum. The rest of its constituents failed to continue their previous session's rally and instead stayed flat,” said Sacchitanand Uttekar, VP- Research (Technical & Derivatives), Tradebulls Securities.
“Since the index has already surpassed the psychological barrier at about 49,000, more short covering may drive the index beyond 49,500 in the upcoming session,” he said.
“The upcoming week's base appears to be solid around 48,500, and 48,830 may be the trail momentum stop loss level for leverage positions,” recommended Uttekar.
The Nifty Bank opened lower, quickly witnessed selling pressure in the opening trade, which took the index towards the 48,600 level. It recouped losses and continued its northward journey to hit 49,000 in intraday trade.
»The Bank Nifty remained strong throughout the day,
