Nifty Bank concluded last week at 51,661.45, up 3.32 percent from the previous week's close. The index reached an all-time high of 51,957 during the week, as the index established a strong support near the 51,200 level on the weekly chart.
Additionally, on the weekly timeframe, Nifty Bank closed above its short-term (20-day), medium-term (50-day), and long-term (200-day) Exponential Moving Average (EMA) levels, indicating a strengthening trend for the short to medium term.
The Relative Strength Index (RSI) momentum indicator, currently at 59.57, shows a strong move on the weekly timeframe, signalling bullish momentum.
Looking ahead, the banking index faces significant resistance near the 51,957 level at its all-time high levels. Should Bank Nifty move upward, private sector banks such as ICICI Bank and HDFC Bank are poised for higher performance. Among public sector banks, State Bank of India (SBI) and Bank of India exhibited potential to outperform in this week.
For the on-going expiry, Bank Nifty's put options exhibited the highest concentration at 51,000 and 50,500, suggesting these levels as potential supports. Conversely, call strikes at 52,000 and 52,500 showed significant open interest concentrations, indicating possible resistance levels.
On the daily charts, a subtle resistance is evident around the 51,950 level. A sustained breach above this level could propel the index towards 52,500-52,700 levels. Traders should closely monitor price movements around this resistance for potential breakout opportunities and to gauge the strength of the upward momentum in Bank Nifty.