Nifty Bank stuck in a range; a breakout above 52,500 could take it towards 53K: Experts
Nifty Bank rallied nearly 200 points on Monday but failed to close above the 52,500 level, which is a crucial resistance level for the index.
It closed 177 points higher at 52,455 while the Nifty50 rose 84 points to close at 24,586.
SBI, Bandhan Bank, PNB, and Bank of Baroda were among top gainers while selling was seen in ICICI Bank, Federal Bank, AU Small Finance Bank, and Axis Bank.
The banking index is stuck in a range and now a breakout above 52,500 levels is required for the index to head towards 53,000, suggested experts.
«The Bank Nifty looks poised to give a breakout from the recent consolidation. The index has been sustaining above the critical moving average. On the higher end, it might move up towards 53,000 once it sustains above 52,500,” Rupak De, Senior Technical Analyst, LKP Securities, said.
“Significant put writing is visible at 52,500, which might provide strength to the Bank Nifty bulls. On the other hand, failure to move above 52,500 in the initial hour might attract selling pressure,” he added.
The Nifty Bank opened higher and built gains throughout the trading session. It touched a high of 52,662 but pared some gains to close below 52,500 levels.
However, the index is sustaining above 52,000 levels, which suggests that there are buyers on every dip. This is a positive sign for the bulls, suggested experts.
»Bank Nifty is sustaining above 52,000 which is positive for bulls. It was a volatile intraday session for Bank Nifty but the undertone theme was buy on dips as twice Bank Nifty
