Nifty Bank Outlook: Dragonfly Doji on weekly chart sends bullish signal; all eyes on ICICI, Axis, SBI, PNB

On the weekly chart, the Index has made a high of 48450.00 and closed the session at 48159.00 levels, down by 0.28 percent lower than the previous week's close. Bank Nifty has formed a Dragonfly Doji candlestick pattern on weekly charts indicating bullishness in the market. 

Also, on the weekly time frame, Bank Nifty has successfully above the support of 20 Day EMA levels, and hence Bank Nifty can further move higher towards the next resistance of 48650 levels.

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Also read: Weekly Market Wrap: D-street ended first week of 2024 in red amid sluggish global cues. What lies ahead?  

On a weekly time frame, The RSI momentum indicator is trading around 67 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 AXISBANK to pull the bank nifty index higher.

Also, ICICI BANK can be another counter to push the index upwards in private banking. The PSU banks are also performing well and are expected to outperform whereas PNB and SBI are expected to move higher and deliver a decent gain in the coming week. 

Also read: Tata Steel, ONGC, DRL, BPCL, Maruti: Nifty at record high but these stocks lie at deep discount to historical averages

The Bank Nifty JANUARY futures are trading at a 229.45-point premium to the Bank Nifty spot.

The OI distribution for BankNifty Put options shows that 48,000 and 47,500 have the highest concentration, which may act as support for the current expiry. Bank Nifty Call strikes 48,500 and 49,000 saw significant OI concentrations and may act as resistance for the current expiry.

On weekly charts we can witness a smaller resistance near 48630 levels which is also a recent lifetime high. If Bank Nifty sustains above the mentioned levels, it can move higher towards the 49000 and above. 

Strong support is located around 47,500-47,300 levels which is also close to its 20-day EMA levels. if the Index closes below the mentioned support, we can witness more correction.

Support: 47,500-47,300Resistance: 48,600-49,000Bias- 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)