Nifty Bank snaps 4-days of decline to reclaim 46K; next hurdle seen at 46,300
economictimes.indiatimes.comNifty Bank index snapped its 4-day losing streak on Saturday to close in the green, above the psychological resistance of 46,000.
The index rose over 350 points while the Nifty50 closed 50 points lower at 21,571 on Saturday.
“Amid rising optimism about AI, US markets surged over the weekend. However, domestic markets exhibited a subdued trend influenced by extended holidays, low volumes, and weekly options expiration,” said Vinod Nair, head of research at Geojit Financial Services.
“Profit-booking was noted in IT and FMCG, while private banks witnessed selective buying post the recent sharp correction and stable Q3 earnings,” he said.
The rally in the Nifty Bank index was led by gains in PNB, Kotak Mahindra Bank, IDFC First Bank, AU Small Finance Bank, among others.
Some selling was seen in IndusInd Bank and Federal Bank.
The Nifty Bank opened higher, but the momentum fizzled out soon, which took the index towards 45,640.
The index bounced back in the second half to climb above 46,100 levels.
The index formed a bullish candle with a long lower shadow. The next big resistance for the index is placed at 46,300 level and a break above the same could trigger a short covering move, suggested experts.
«The BankNifty index displayed resilience by forming a higher low on the daily chart while maintaining the immediate support zone of 45,700-45,600,” said Kunal Shah, senior technical & derivative analyst at LKP Securities.
“To resume the uptrend, the index needs to overcome the immediate resistance at 46,300 — a breakthrough that could trigger short covering, propelling it towards 46,500/46,800 levels,” he said.
“However, a close below the crucial support of 45,600 might instigate a substantial downside correction
