Nifty Bank: Index support at 47,700; Axis Bank, ICICI Bank, Canara Bank shares may so well

Nifty Bank index concluded last week at 48,201.05, up 1.32 per cent over its previous week's close. During the week, the index hit a high of 48,679.65. On the weekly chart, the banking index has a strong support near the 47,700 level, which is also close to its 50 Day EMA level.

In addition, Nifty Bank has convincingly closed above its short-term (20-day), medium-term (50-day), and long-term (200-day) Exponential Moving Averages (EMAs). The Relative Strength Index (RSI) momentum indicator, presently standing at 58.85 on the weekly timeframe is signalling positive momentum.

Looking ahead, the index may encounter formidable resistance near 48,700-49,000 levels, in proximity to its all-time highs. Anticipated upward movement is likely to be propelled by Axis Bank and ICICI Bank in the private banking space, with notable contributions Canara Bank and State Bank of India likely this week.

Nifty Bank’s Put options exhibit the highest concentration at strikes of 48,000 and 47,500 levels, potentially serving as support levels for the on-going expiry. Conversely, call strikes at 48,500 and 48,600 showcase significant Open Interest (OI) concentrations, suggesting potential resistance levels for the current expiry.

On the daily chart, a subtle resistance is evident at 48,650 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 49500 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.