Sumeet Bagadia, executive director at Choice Broking, said Nifty Bank may remain sideways to bullish this week. On weekly charts, the sub-index has established strong support near 50,750 levels, the market expert suggested. On the higher side, a subtle resistance is evident around 51,300-51,500 levels, 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 IndusInd Bank Ltd and ICICI Bank Ltd are poised for higher performance. Among public sector banks, Canara Bank Ltd and State Bank of India (SBI) exhibit the potential to outperform in the coming week," Bagadia stated.
"For the ongoing expiry, Nifty Bank's put options exhibit the highest concentration at 51,000 and 50,500, suggesting these levels as potential supports. Conversely, call strikes at 51,000 and 51,500 show significant open interest concentrations, indicating possible resistance levels which indicate a range of 50,500-51,500 for the monthly expiry," the market specialist said.
"On daily charts, a subtle resistance is evident around 51,300-51,500 levels. A sustained breach above this level could propel the sub-index towards 51,800. Traders should be cautious at the mentioned resistance levels and should consider profit booking in their long position," he further stated.
Meanwhile, Indian equity benchmarks were seen last trading on a strong note in Monday's session, led by gains in private banks, financials, IT and consumer stocks. Broader market (mid- and small-cap) shares were also positive.
14 out of the 16 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Bank, Nifty Financial Services, Nifty IT, Nifty Consumer Durables and Nifty FMCG were outperforming the NSE platform by rising as much as 0.54 per cent, 0.72 per cent, 1.46 per cent, 1.33 per cent and 0.45 per cent, respectively. However, Nifty PSU Bank was down 0.16 per cent.
The overall market breadth was positive as 2,259 shares were advancing while 1,718 were declining on BSE.