Nifty Bank rises nearly 200 points; 44,000 will pose immediate hurdle on Tuesday
Nifty Bank closed with gains of nearly 200 points outperforming the benchmark index for the second day in a row on Friday.
The index rose 191 points to close at 43,769. It rose to an intraday high of 43,806 while on the downside it hit an intraday low of 43,566.
The Nifty50 closed flat with a negative bias at 19,794.
Experts are of the view that on the upside 44,000 will act as a crucial resistance for the Nifty Bank index in the coming week, and a decisive move above the same could trigger a strong rally in the index. Indian equity market will remain shut on Monday on account of a public holiday.
«Following RBI's tightening measures, the Bank Nifty has consolidated at lower levels, with four of the five largest banks dropping below their 200DMA.
The sentiment appears sideways in the short term,” Rupak De, Senior Technical analyst at LKP Securities, said.
“The level of 44,000 is poised to remain a pivotal point; a decisive move above this mark could potentially trigger a substantial rally for the index. On the downside, visible support resides around 43500,” he said.
Levels To Track Next Week:
The Nifty Bank index opened on a flattish note but gradually moved higher towards 43,800 zone in the latter part of the day.
On the upside, the index is facing consistent pressure around 43,800-44,000 levels in this past week.
On the downside, crucial support is placed at 43,500.
“Nifty Bank formed a bullish candle on the daily scale as some buying was visible at lower zones. On a weekly scale, it formed a Hammer kind of candle, but momentum is missing at higher zones,” Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.
“Now the index has to hold above 43650 zones for a bounce towards
