The index closed flat but with a negative bias. It did manage to hold on to 47,000 levels towards the close of the trade, which is a positive sign. The Nifty50 closed with gains of nearly 20 points.
Top gainers include names like Bank of Baroda, Bandhan Bank, SBI and IDFC First Bank while some selling was seen in Axis Bank, AU Small Finance Bank and HDFC Bank.
The Nifty Bank index consolidated in a narrow range as it failed to hold on to the gains at higher levels. However, investors can use dips as a buying opportunity.
“Bank Nifty opened with a gap up and thereafter consolidated for the most part of the day. On the hourly momentum indicator, we can observe positive divergence and crossover which is a bullish sign,” Jatin Gedia – technical research analyst at Sharekhan by BNP Paribas, said.
“We expect the Bank Nifty to provide a pullback till 44,800 – 45,000 from a short-term perspective. In case of a dip, we it should be used as a buying opportunity,” he said.
Levels To Track:
The Nifty Bank Index opened marginally higher but failed to hold 47,200 zones and gradually drifted lower towards 46,886 marks in the first half of the session. But, it managed to close above 47,000 towards the close.“Some recovery was seen in Nifty Bank from lower zones and index remained consolidative in a narrow range of 200 points in the latter part of the day,” Chandan Taparia, senior vice-president, analyst-derivatives, at Motilal Oswal Financial Services Limited, said.
“It has formed a small-bodied candle on daily scale with long lower shadow as some buying was seen at lower zones and it closed in the positive territory near 47,100 zones,” he said.
“Now the index has to continue to hold above 47,000 zones, for an up move towards 47,450 then 47,588 levels while on the downside support is seen at 46,800 then 46,666 zones,” recommended Taparia.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)