Nifty Bank closes flat; next big support for the index is placed at 48,400: Experts

The Nifty Bank ended flat, but with a negative bias on Monday in a volatile trading session.
The index closed 28 points lower at 48,895, while the Nifty50 fell 33 points to close above 22,400.

Kotak Mahindra Bank rose over 5% post Q4 results. JPMorgan upgraded the private sector lender to 'Overweight' from 'Neutral' rating with a target price of Rs 2,070.

Axis Bank, HDFC Bank, ICICI Bank, and IndusInd Bank also closed in the black, while some profit-taking was seen in AU Small Finance Bank, SBI, Bank of Baroda, and PNB.

The Nifty Bank witnessed a volatile trading session and now a breakout on either side will dictate the trend. On the higher side, crucial resistance is placed at 49,300, while on the downside, crucial support is placed at 48,400 levels, suggest experts.

"The BankNifty index underwent a sideways trading session. The immediate resistance is noted at 49,300, and a decisive breakthrough could trigger short-covering moves towards 49500,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said.

“Conversely, a significant breach of the 48,900 mark may induce further selling pressure towards 48,400, where the 20-DMA is positioned,” he said.

The Nifty Bank which opened above 49,000-49,100, failed to hold on to the momentum and witnessed a steady fall throughout the trading session.

The index found support above the 48,784 mark and bounced back to close marginally below the 48,900 level. Options data suggests that 49,500 could be major resistance, while on the downside 48,500 is likely to act as a support.

"It was a volatile session for Bank Nifty with bias on the negative side. The market remained negative for the better part of the day with bulls failing to clear the 49,300 hurdle,” Bhavik Patel- Senior Research Analyst, Tradebulls Securities, said.

“It is the second day the market closed below its 5-day moving average. Next support continues around 48,400 where the 20-day moving average is. On the higher side, 49,500-49,600 on the daily chart remains the resistance,” he said.

“If we look at the open interest, the highest CE OI is at 49,500 again reiterating resistance levels while 49,000 and 48,500 have the highest PE OI giving support for Bank Nifty,” highlights Patel.

“Trend is expected to remain bearish looking at PE unwinding and increase in CE OI from 49,100 to 49,500 strike prices,” he recommended.

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