Nifty Bank outlook: Index resistance at 47,000; all eyes on Canara Bank, PNB, ICICI Bank
Nifty Bank has closed below its short-term (20 Day) and medium-term (50 Day) EMA levels on the weekly time-frame. The index has a support near the 44,500 level, which is also close to its long-term (200 Day) EMA levels.
- Feb 5, 2024,
- Updated Feb 5, 2024 10:23 AM IST
Nifty Bank hit a high of of 46,892.35 last week before closing the week at 45,970.95, up 2.46 per cent. Nifty Bank is trading sideways with a support in a range of 44,700-44,500 levels. Nifty Bank has closed below its short-term (20 Day) and medium-term (50 Day) EMA levels on the weekly time-frame. The index has a support near the 44,500 level, which is also close to its long-term (200 Day) EMA levels.
On the weekly time frame, the RSI momentum indicator traded at 52.85 level. On the higher side, the index has a strong resistance near 47,000 and 47,200 levels. If the banking index moves higher, one can expect IndusInd Bank to pull the Nifty Bank index higher. Also, ICICI Bank can be another counter to push the index upwards in private banking. PSU banks are also performing well and are expected to outperform, where Canara Bank and Punjab National Bank are expected to move higher and deliver decent gains this week.
The open interest (OI) distribution for Nifty Bank Put options shows that 46,000 and 45,500 strikes have the highest concentration, which may act as support for the current expiry. Nifty Call strikes of 46,700 and 46,500 saw significant OI concentrations and may act as resistance for the current expiry.
On the daily chart, one can witness a smaller resistance the near 46,900 level. If Nifty Bank sustains above the mentioned level, it can move higher towards 47,500 and above.
(The author of this article is Executive Director Choice Broking)
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: SBI shares at Rs 800? Analysts bullish on PSB stock despite Q3 miss
Nifty Bank hit a high of of 46,892.35 last week before closing the week at 45,970.95, up 2.46 per cent. Nifty Bank is trading sideways with a support in a range of 44,700-44,500 levels. Nifty Bank has closed below its short-term (20 Day) and medium-term (50 Day) EMA levels on the weekly time-frame. The index has a support near the 44,500 level, which is also close to its long-term (200 Day) EMA levels.
On the weekly time frame, the RSI momentum indicator traded at 52.85 level. On the higher side, the index has a strong resistance near 47,000 and 47,200 levels. If the banking index moves higher, one can expect IndusInd Bank to pull the Nifty Bank index higher. Also, ICICI Bank can be another counter to push the index upwards in private banking. PSU banks are also performing well and are expected to outperform, where Canara Bank and Punjab National Bank are expected to move higher and deliver decent gains this week.
The open interest (OI) distribution for Nifty Bank Put options shows that 46,000 and 45,500 strikes have the highest concentration, which may act as support for the current expiry. Nifty Call strikes of 46,700 and 46,500 saw significant OI concentrations and may act as resistance for the current expiry.
On the daily chart, one can witness a smaller resistance the near 46,900 level. If Nifty Bank sustains above the mentioned level, it can move higher towards 47,500 and above.
(The author of this article is Executive Director Choice Broking)
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: SBI shares at Rs 800? Analysts bullish on PSB stock despite Q3 miss