Nifty Bank rose more than 500 points, reclaims 45,000; next target seen at 46K
Nifty Bank bounced back on Monday and rose more than 500 points to reclaim 45,000.
The Nifty Bank rose 576 points to close at 45,442. The Nifty50 rallied 387 points to close at 21,739.
The rally in the Nifty Bank was led by gains in IDFC First Bank, Bank of Baroda, Kotak Mahindra Bank, PNB, and Federal Bank while some profit-taking was seen in AU Small Finance Bank.
The Nifty Bank bounced back after retesting 200-DMA on the daily charts last week and the momentum continued in the Interim Budget week as well. If the momentum continues, the next target is seen around 46,000, suggest experts.
“Bank Nifty is in the process of retracing the fall it has witnessed from 48,300 – 44,500 and hence the pullback can continue till 46,000 – 46,200 from a short-term perspective,” Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said.
“On the downside 45,110 is the crucial support from a short-term perspective,” he added.
Levels To Track
Nifty Bank opened gap up by more than 300 points and extended the momentum towards 45660 zones in the first half of the session.
However, later the index consolidated at higher levels in a broader range in between 45200 to 45500 zones and ended with decent gains of around 570 points forming a bullish candle on the daily charts.
“Nifty Bank formed a Bullish candle on a daily scale and negated the formation of lower highs after three sessions,” Chandan Taparia, Senior Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.
“Now the index has to continue to hold above 45250 zones for a bounce towards 45750 then 46000 levels while on the downside support is seen at 45000 then 44750 zones,” he said.
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