The Nifty Bank closed in the green for the third day in a row on Friday, which propelled the index above the 48,500 level in intraday trade.

The index pared some gains but outperformed Nifty 50. The Nifty bank rose 430 points to close at 48,493, while Nifty 50 ended flat with a negative bias.

The bank index rose from 47,124 recorded on March 27 to 48,493 as of April 5, which translates into an upside of 2.9% in a week. It registered the biggest single weekly gain in 9 weeks.

Banking stocks witnessed a steady rise on Friday even though the Reserve Bank of India (RBI) kept report rates unchanged and raised concerns over the possible rise in inflation.

“Although the RBI policy meeting unfolded as anticipated, concerns over food inflation and warnings of a heat wave tampered sentiment,” said Vinod Nair, head of research at Geojit Financial Services.

“While the main domestic indices concluded with marginal movement, the Bank Nifty edged higher, propelled by robust credit growth in Q4FY24. The global sentiment was dampened by the rise in oil prices and tensions in the Middle East,” he said.PNB, Federal Bank, HDFC Bank, IDFC First Bank and Kotak Bank, AU Small Finance Bank closed with gains of 1-2% each while some selling was seen in Axis Bank, Bandhan Bank, and Bank of Baroda.The Nifty Bank witnessed a steady rise post the outcome of the MPC meeting, which took it above its crucial resistance of 48,500 level and if the momentum sustains a fresh high could be on the cards.

The index hit a record high of 48,636 on December 28, 2023.

“Following the RBI policy announcement, the Bank Nifty maintained its robust momentum, remaining above the crucial level of 48,000,” said Kunal Shah, senior technical & derivative analyst at LKP Securities.

“This suggests the potential for reaching new all-time highs next week, possibly even touching the 50,000 mark,” he said.

“Notably, aggressive put writing has been observed at lower strikes, establishing a supportive base in the 48,200-48,000 zone, which is anticipated to serve as a cushion for bullish sentiment,” recommended Shah.

Also Read: “Elephant returning to forest”: RBI Governor Das hints at inflation reaching 4 per cent target


Important Levels To Track:

The Nifty Bank index opened above 48100 levels and continued to gain ground throughout the session. It formed a strong bullish candle on the weekly charts.

“The BankNifty Index continued its upward trajectory despite a turbulent week, registering a noteworthy single day surge of 432.25 points. At 48493.05 at the end of the first week of April, the index showed a Green Bullish candle, indicating a bullish mood,” said Sacchitanand Uttekar, VP- Research (Technical & Derivatives), Tradebulls Securities.

“Notably, during the course of the week, the index rallied by 2.90%. Significantly, the index closed above the 5-DEMA Level, or 47,900, where it found support on Friday,” he said.

“The levels of 47,714 and 47,440 are designated as immediate support in case the current low is broken. On the other hand, the upward resistance zone is located at 48,636 and 48,640,” highlighted Uttekar.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)


Source link