Nifty Bank rallies over 300 points; next immediate resistance seen around 47,000: Experts
Nifty Bank closed in the green on Thursday after closing in the red for the past nine trading sessions in a row.
The Nifty Bank rose 374 points to close at 46,684 while the Nifty50 closed 172 points higher above 22,000.
PNB, IndusInd Bank, Bank of Baroda and IDFC First Bank led gains while selling was seen in ICICI Bank.
The index faced resistance around the 47,000 mark on Thursday which would now become an important resistance for Friday’s session as well.
The momentum also helped the index to close above the 50-DMA on the daily charts which is a positive sign for the bulls; however, there was some nervousness at higher levels.
«The Nifty bank ended the day on a flat note by forming a 'Doji' formation on its daily scale. Despite the morning upmove the index faced profit booking pressure as it slipped below its 20 DEMA level of 46,780 but it managed to close the day above its 5 DEMA support level of 46,600,” Aasif Hirani, Managing Director, Tradebulls Securities, said.
“As the intermediate trend remains weak, the index is likely to trend lower within the 47,000-46,000 range in the coming sessions as well,” he said.
“A fresh breakdown is likely in the coming session as indicated by its daily ADX which is now at its breakout level of 25,” highlighted Hirani.
The Nifty Bank opened higher and built on gains to inch closer to the 47,000 mark in the first half of the session, but profit booking at higher levels pushed the index towards its opening.
In case, the momentum on the downside increases, support is seen
