These 4 bank stocks can gain if Nifty Bank goes up, says Sumeet Bagadia of Choice Broking

Sumeet Bagadia, executive director at Choice Broking, said Nifty Bank could remain sideways to bullish this week. The sub-index has established strong support near 49,700, witnessing a strong bounce back from the mentioned support level, the market expert suggested. On the higher side, Nifty Bank faces significant resistance near the 51,000 zone, he added.

On the stock-specific front, Bagadia recommended shares of four banks which can go up if the sub-index moves higher. "If Nifty Bank moves upward, private sector banks such as HDFC Bank Ltd and ICICI Bank Ltd are poised for higher performance. Among public sector banks, Canara Bank and State Bank of India (SBI) exhibit potential to outperform," he stated.

"For the ongoing expiry, Nifty Bank's put options exhibit the highest concentration at 50,000 and 49,500, hinting at potential support levels. Conversely, call strikes at 51,000 and 51,500 show significant open interest concentrations, indicating possible resistance levels," Bagadia also said.

"On daily charts, a subtle resistance is evident around the 51,000-51,200 range. A sustained breach above this level could propel the index towards 51,500-51,800 levels. Traders should be cautious at the mentioned resistance levels and consider profit booking in their long position," he further mentioned.

Meanwhile, Indian equity benchmarks reversed early losses to trade higher today, led by gains in heavyweight financials stocks.

Domestic indices fell during the initial session after US-based short seller Hindenburg Research's latest report alleged links between Sebi chairperson Madhabi Puri Buch and her husband Dhaval Buch with an offshore fund tied to the Adani group.

The rebound came as the impact of the US short seller's fresh report was largely limited to the 10 Adani group stocks.