Nifty Bank weekly outlook: Resistance at 48,200; all eyes on ICICI Bank, SBI and Canara Bank

On the weekly chart, the Index have made a high of 48154.50 and closed the session at 47709.80 levels, down by 0.93 percent lower than the previous week's close. Bank Nifty is trading in a range of 47000-48200 levels.

Also, on weekly time frame Bank nifty has successfully closed above the support of 20 Day EMA levels and hence Bank nifty can further move higher towards the next resistance of 48200 levels. On weekly time frame, The RSI momentum indicator is currently trading around 63 levels.

Bank Nifty has also successfully closed above its short term (20 Day), Medium term (50 Day) and long term (200 Day) EMA levels. If the index moves on the higher side, we expect AUBANK to pull the bank nifty index higher. Also, ICICI BANK can be another counter to push index upwards in private banking. The PSU banks are also performing well and are expected to outperform where CANBK and SBIN is expected to move higher and deliver a decent gain in the coming week. 

The Bank Nifty JANUARY futures are trading at a 190.4-point premium to the Bank Nifty spot. The OI distribution for BankNifty Put options shows that 47500and 47000 have the highest concentration, which may act as support for the current expiry. Bank Nifty Call strikes 48000 and 49000 saw significant OI concentrations and may act as resistance for the current expiry.

On weekly charts we can witness a smaller resistance near 48200 levels. If Bank Nifty sustains above the mentioned levels, it can move higher towards the new all-time high levels at 48800 and above. 

Strong support is located around 47300-47000 levels. If the Index closes below the mentioned support, we can witness more correction in the index.

Support: 47300-47000
Resistance: 48200-48500
Bias- Sideways to Bullish

(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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