The index was trading above 8 of 8 SMAs, the RSI was at 63.7, while the MACD was above its Center Line but below the signal line. Nifty Bank has support at 39,000 levels while resistance at 40,200 levels.
“Structurally, the recent rally from June lows of 32,290 is strongest in magnitude since October 2021 while declines are smaller and short-lived indicating an improving price structure,” ICICIdirect said in a report.
Here’s how analysts read the Nifty Bank pulse:
Nifty Bank formed a bearish candle on the daily scale but is forming higher lows from the last five sessions. Now, it has to hold above 39,500 zones for an up move towards 39,750 and 40,000 zones whereas supports are placed at 39,250 and 39,000 zones.
The index continued to face resistance around the level of 40,000 where the highest open interest is built up on the call side. The immediate downside support stands at 39,500-39,400 and if breached will see further downside towards 38,800-38,500 levels. The bias remains on the upside and once should have a buy-on-dip approach.
Mohit Nigam, Head – PMS, Hem Securities
In Nifty Bank, major resistance can be seen at 40,200 and support is around 39,300.
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