Nifty Bank hit an intra-week high of 50,252.95, before concluding this past week at 50,002, up 0.40 per cent. On the weekly chart, Nifty Bank has established strong support near the 49,600 level.
The banking index has closed above its short-term (20-day), medium-term (50-day), and long-term (200-day) exponential moving average (EMA) levels, indicating a strengthening of trend for the short to medium term. The momentum indicator Relative Strength Index (RSI) is currently trading at 63.83 level and showed a bounce on the weekly timeframe, signaling bullish momentum.
Looking ahead, Nifty Bank faces significant resistance near the 50,250 level. Should Bank Nifty move upward, private sector banks such as Axis Bank and HDFC Bank are poised for higher performance. Among public sector banks, Canara Bank and Bank of Baroda (BOB) have potential to outperform in the coming week.
For the ongoing expiry, Bank Nifty's put options exhibited the highest concentration at 50,000 and 49,500 strikes, suggesting these levels as potential supports. Conversely, call strikes at 50,500 and 51,000 show significant open interest concentrations, indicating possible resistance levels.
On the daily charts, a subtle resistance is evident around the 50,250 level. A sustained breach above this level could propel the index towards the next resistance range of 50,500-50,700. 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.