Nifty Bank support at 43,200-43,300; all eyes on Axis Bank, HDFC Bank, BOB and Canara Bank

Nifty Bank made an intra-week high of 44,420.95, before closing the week at 43,583.95 level, forming a Shooting Star candle. On the weekly chart, the index formed a Bearish candle after making a low of 43,513.85 levels, which was inside the support range of 43,500-43,600. The RSI momentum indicator is currently trading around the 48 level, which is shifting momentum on the downside. The low of the bearish candle was placed at around 43,500 level, which is a strong support. 

On the daily chart, the index witnessed a strong selloff in the last two days after attempting to cross the resistance of 44,500 level. The index has a strong support at 43,500 level. If the aforementioned support level is broken, one can witness some further bearishness in Nifty Bank.  Banks such as Axis Bank Ltd and ICICI Bank Ltd will lead the index downwards.  If the index moves on the higher side, one can expect HDFC Bank to outperform the Nifty Bank. In the PSU banking pack, Canara Bank Ltd and Bank of Baroda Ltd is expected to move higher and deliver a decent gain in the coming week. 

The Nifty Bank November futures traded at a 131.5-point premium to the Nifty Bank spot. 

The open interest (OI) distribution for Nifty Bank Put options shows that the 43,000 strike has the highest concentration, which may act as support for the current expiry. If the 43,000 level is broken, Nifty Bank can further move downwards. Nifty Bank Call strikes of 43,800 and 44,000 witnessed significant OI concentrations and may act as resistance for the current expiry.

On the weekly chart, one can witness a smaller support in a range of 43,200-43,300, which is also close to its 200-day EMA levels. If Nifty Bank falls below the mentioned level, it can move towards the levels of 42,800-43,000. 

Nifty Bank has strong resistance of 43,950, which is also its 50-day EMA level. If Nifty Bank crosses the mentioned resistance, it can move higher towards the next resistance of the 44,500 level.

Also read: Tata Technologies IPO: Can you invest in multiple categories in Tata Group's offering?