Nifty Bank support at 42,100; all eyes on HDFC Bank, Axis Bank, Canara Bank, ICICI Bank and Indian Bank
In the weekly context, the index reached a high of 43,416.10 and ultimately closed the week at 43,318.25. This marked a commendable 1.25 per cent increase compared with the previous week's closing figure.
- Nov 6, 2023,
- Updated Nov 6, 2023 11:16 AM IST
Nifty Bank has exhibited a notable bullish sentiment on the weekly chart, culminating in the formation of a green candle. The ascent followed a temporary dip to 42,390.50 levels earlier in the week. Concurrently, the Relative Strength Index (RSI) momentum indicator currently hovers around 46 level, indicating a moderate but not overbearing sentiment in the market.
In the weekly context, the index reached a high of 43,416.10 and ultimately closed the week at 43,318.25. This marked a commendable 1.25 per cent increase compared with the previous week's closing figure.
Transitioning to the daily chart, a robust support level can be discerned at the 42,100. The viability of this support is paramount, as a breach of these levels may usher in a bearish outlook for the Nifty Bank. Notably, financial institutions such as HDFC Bank and Axis Bank may play pivotal roles in driving the index lower. Conversely, in the event of an upward trajectory, the expectation is that ICICI Bank will exhibit a superior performance within the private banking sector whereas PSU banks such as Canara Bank and Indian Bank are anticipated to yield commendable gains in the upcoming week.
In the F&O segment, Nifty Bank November futures traded at a premium of 190.85 points over the Nifty Bank spot. An analysis of the open interest (OI) distribution for Nifty Bank Put options reveals that the 43,000 strike holds the most substantial concentration.
This level is poised to serve as a critical support point for the current expiration period. On the other side, Nifty Bank Call strikes of 43,500 and 44,000 exhibit notable OI concentrations, signifying potential resistance levels for the current expiry cycle. Zooming out to the weekly chart, there is a minor support range delineated between 42,300 and 42,100 levels.
Should the Nifty Bank dip below these delineated levels, it may gravitate towards the 41,000 range. It is important to note that a robust resistance at 43,700 level, in proximity to the 20-Day Exponential Moving Average (EMA), poses a significant challenge. If the Nifty Bank manages to surmount this barrier, it could pave the way for an upward trajectory towards the 44,200 level.
(The author of this article is Executive Director at Choice Broking)
Disclaimer: Recommendations provided in this article and/ or any reports attached or relied on herein are authored by an external party. The views expressed herein are those of the respective authors/ entities, and do not represent the views of Business Today (BT).
Nifty Bank has exhibited a notable bullish sentiment on the weekly chart, culminating in the formation of a green candle. The ascent followed a temporary dip to 42,390.50 levels earlier in the week. Concurrently, the Relative Strength Index (RSI) momentum indicator currently hovers around 46 level, indicating a moderate but not overbearing sentiment in the market.
In the weekly context, the index reached a high of 43,416.10 and ultimately closed the week at 43,318.25. This marked a commendable 1.25 per cent increase compared with the previous week's closing figure.
Transitioning to the daily chart, a robust support level can be discerned at the 42,100. The viability of this support is paramount, as a breach of these levels may usher in a bearish outlook for the Nifty Bank. Notably, financial institutions such as HDFC Bank and Axis Bank may play pivotal roles in driving the index lower. Conversely, in the event of an upward trajectory, the expectation is that ICICI Bank will exhibit a superior performance within the private banking sector whereas PSU banks such as Canara Bank and Indian Bank are anticipated to yield commendable gains in the upcoming week.
In the F&O segment, Nifty Bank November futures traded at a premium of 190.85 points over the Nifty Bank spot. An analysis of the open interest (OI) distribution for Nifty Bank Put options reveals that the 43,000 strike holds the most substantial concentration.
This level is poised to serve as a critical support point for the current expiration period. On the other side, Nifty Bank Call strikes of 43,500 and 44,000 exhibit notable OI concentrations, signifying potential resistance levels for the current expiry cycle. Zooming out to the weekly chart, there is a minor support range delineated between 42,300 and 42,100 levels.
Should the Nifty Bank dip below these delineated levels, it may gravitate towards the 41,000 range. It is important to note that a robust resistance at 43,700 level, in proximity to the 20-Day Exponential Moving Average (EMA), poses a significant challenge. If the Nifty Bank manages to surmount this barrier, it could pave the way for an upward trajectory towards the 44,200 level.
(The author of this article is Executive Director at Choice Broking)
Disclaimer: Recommendations provided in this article and/ or any reports attached or relied on herein are authored by an external party. The views expressed herein are those of the respective authors/ entities, and do not represent the views of Business Today (BT).