Nifty Bank outperforms on Budget Day! May face resistance around 46,500 levels

Synopsis

“The Bank Nifty bulls demonstrated strength as the index closed above the 46,000 level on the Interim Budget Day. The overall undertone remains bullish, with support at 47,800 providing a cushion for the bulls,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Nifty Bank outperforms on Budget Day! May face resistance around 46,500 levelsETMarkets.com

The Nifty Bank outperformed the benchmark indices on the Budget Day on Thursday. The index rose nearly 200 points to close at 46,188, while the Nifty50 closed below 21,700 levels.

Stocks that led the rally for Nifty Bank include names like PNB, Bank of Baroda, Axis Bank, SBI, and HDFC Bank.

The Nifty Bank managed to hold on to the gains but may face some resistance around its next hurdle placed around 46,500, suggest experts.

“The Bank Nifty bulls demonstrated strength as the index closed above the 46,000 level on the Interim Budget Day. The overall undertone remains bullish, with support at 47,800 providing a cushion for the bulls,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

“On the upside, the immediate resistance is positioned at 46,500-46,600, and a breakthrough at this level is anticipated to trigger sharp short-covering moves in the market,” he said.

The Nifty Bank opened higher but failed to build gains in the morning sessions and quickly retested 45668. It picked up pace towards the second half of the session to hit an intraday high of 46,306.

The level of 46,500-46,600 also coincides with the 50-DMA on the daily charts. Hence, some resistance could be seen around these levels.

“Bank Nifty witnessed the continuation of the positive momentum. During the day, it was the Bank Nifty which held on the crucial support zone of 45,660 – 45,700 where the hourly moving averages were placed and resumed its upmove,” Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said.

“We believe that the Bank Nifty is likely to move higher towards 46,570 – 46,800 from a short-term perspective. The daily momentum indicator has triggered a positive crossover, a buy signal, and is likely to provide speed to the upmove,” he said.

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

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