Nifty Bank weekly outlook: Level of 48,600 a key resistance; eyes on SBI, BOB, Axis Bank, IndusInd Bank
Nifty Bank’s put options exhibited the highest concentration at 47,500 and 47,800 levels, potentially serving as support levels for the ongoing expiry.
- Mar 8, 2024,
- Updated Mar 8, 2024 10:24 AM IST
The Nifty Bank index concluded the trading week at 47,835.80, reflecting a notable increase of 1.16 per cent over the previous week's closing level. During the week, the index reached a high of 48161.25, with Bank Nifty rebounding from the 47,200 level, forming a fresh support for the index.
On the weekly timeframe, Nifty Bank convincingly closed above its short-term (20-day), medium-term (50-day), and long-term (200-day) Exponential Moving Average (EMA) levels. The Relative Strength Index (RSI) momentum indicator, presently standing at 60.87 levels on the weekly timeframe is signalling a positive momentum.
Looking ahead, the index may encounters formidable resistance around 48,400 and 48,600 levels, in proximity to its all-time highs. Anticipated upward movement is likely to be propelled by IndusInd Bank and Axis Bank in the private banking sector, with notable contributions expected from PSU banks such as Bank of Baroda and SBI, potentially outperforming in the coming week. Nifty Bank’s put options exhibited the highest concentration at 47,500 and 47,800 levels, potentially serving as support levels for the ongoing expiry. Conversely, call strikes at 48,000 and 49,000 showcased significant open interest (OI) concentrations, suggesting potential resistance levels for the current expiry.
On the daily chart, a subtle resistance is evident around the 48,600 levels for Nifty Bank. A sustained breach above this level holds the potential to propel the index toward new all-time highs, with a primary target set at 49,000 and beyond. Traders should closely monitor price movements around this resistance for potential breakout opportunities and gauge the strength of the upward momentum in Nifty Bank.
(The author of this article is Executive Director at Choice Broking)
The Nifty Bank index concluded the trading week at 47,835.80, reflecting a notable increase of 1.16 per cent over the previous week's closing level. During the week, the index reached a high of 48161.25, with Bank Nifty rebounding from the 47,200 level, forming a fresh support for the index.
On the weekly timeframe, Nifty Bank convincingly closed above its short-term (20-day), medium-term (50-day), and long-term (200-day) Exponential Moving Average (EMA) levels. The Relative Strength Index (RSI) momentum indicator, presently standing at 60.87 levels on the weekly timeframe is signalling a positive momentum.
Looking ahead, the index may encounters formidable resistance around 48,400 and 48,600 levels, in proximity to its all-time highs. Anticipated upward movement is likely to be propelled by IndusInd Bank and Axis Bank in the private banking sector, with notable contributions expected from PSU banks such as Bank of Baroda and SBI, potentially outperforming in the coming week. Nifty Bank’s put options exhibited the highest concentration at 47,500 and 47,800 levels, potentially serving as support levels for the ongoing expiry. Conversely, call strikes at 48,000 and 49,000 showcased significant open interest (OI) concentrations, suggesting potential resistance levels for the current expiry.
On the daily chart, a subtle resistance is evident around the 48,600 levels for Nifty Bank. A sustained breach above this level holds the potential to propel the index toward new all-time highs, with a primary target set at 49,000 and beyond. Traders should closely monitor price movements around this resistance for potential breakout opportunities and gauge the strength of the upward momentum in Nifty Bank.
(The author of this article is Executive Director at Choice Broking)