Nifty Bank outlook: Index support at 48,000 level; all eyes on HDFC Bank, PNB, BOB shares

Nifty Bank exhibited a notable bullish sentiment on the weekly chart, culminating in the formation of a large bullish candle that concluded at 48,292.25 levels. This ascent followed a temporary dip to the 47,411.65 level earlier in the week. On the weekly chart, the Relative Strength Index (RSI) momentum indicator stood at the 67 level, indicating a bullish sentiment in the market.

In the weekly context, the banking index reached a new all-time high of 48636.45, which was above its important moving averages. Nifty Ban ultimately closed the trading week at all-time high of 48,292.25 level. This marked a commendable 1.69 per cent increase over the previous week.

Transitioning to the daily chart, a robust support level can be discerned at the 48,000 level. Notably, in the event of an upward trajectory, the expectation is that HDFC Bank Ltd will exhibit a superior performance within the private banking sector, whereas PSU banks like Punjab National Bank (PNB) and Bank of Baroda are anticipated to yield commendable gains in the upcoming week.

Examining the Nifty Bank January futures, they stood at a premium of 336.55 points compared with the Nifty Bank spot.
Analysis of the Open Interest (OI) distribution for Nifty Bank Put options reveals that the 48,000 strike hold the most substantial concentration. This level is poised to serve as a critical support point for the current expiration period. On the other side, Nifty Bank Call strikes of 48,500 and 49,000 exhibit notable OI concentrations, signifying potential resistance levels for the current weekly expiry cycle

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.

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