Nifty Bank settled last week at 47,574.15, down 2.04 per cent over its previous week's close. On the weekly timeframe, the banking index convincingly closed above its short-term (20 Day), medium-term (50 Day), and long-term (200 Day) Exponential Moving Average (EMA) levels. The Relative Strength Index (RSI) momentum indicator stood at 56.02 on the weekly timeframe, signaling positive momentum. Nifty Bank has a strong support near 46,500-46,200 levels on the weekly chart.
Looking ahead, the index may encounter formidable resistance near 48,600-48,900 levels, in proximity to its all-time highs. Anticipated upward movement is likely to be propelled by HDFC Bank Ltd and Kotak Mahindra Bank Ltd in the private banking sector. Notable contributions are expected from PSU banks such as Canara Bank and State Bank of India that look to outperform this week.
Nifty Bank’s Put options exhibited the highest concentration at 47,000 and 47,500 strike, potentially serving as support levels for the on-going expiry. Conversely, call strikes at 48,000 and 48,500 showcase significant Open Interest (OI) concentrations, suggesting potential resistance levels for the current expiry.
On the daily chart, a subtle resistance is evident at 48,200. A sustained breach above this level holds the potential to propel Nifty Bank toward new all-time highs, with a primary target set at 49,500 and beyond. Traders should closely monitor price movements around this resistance for potential breakout opportunities and gauge the strength of the upward momentum in Nifty Bank.