These 4 bank stocks can gain if Nifty Bank moves higher, says Sumeet Bagadia of Choice Broking

Sumeet Bagadia, executive director at Choice Broking, said Nifty Bank could remain sideways to bullish this week. On the higher side, resistance could be seen in the 48,700-49,000 range while support may be found at the 47,750-47,500 zone.

The market expert also suggested four banking names if Nifty Bank moves higher. "Looking ahead, the (sub)-index encounters formidable resistance near 48,500 level. If it moves upward, Axis Bank Ltd and HDFC Bank Ltd in the private banking sector can move higher with notable contributions. And from the PSU bank space, Indian Bank and State Bank of India (SBI) have potential to outperform in the coming week," Bagadia stated.

"Nifty Bank's put options exhibit the highest concentration at 48,000 and 47,500, potentially serving as support levels for the on-going expiry. Conversely, call strikes at 48,500 and 49,000 showcase significant open interest concentrations, suggesting potential resistance levels for the current expiry," he further said.

On daily charts, Bagadia said a subtle resistance is evident around 48,650 level. "A sustained breach above this level holds the potential to propel the index towards the next resistance of 49,100. Traders and investors should closely monitor price movements around this resistance for potential breakout opportunities and gauge the strength of the upward momentum in Nifty Bank," he mentioned.

The sub-index was last seen 0.17 per cent up at 48,199.50 during the special trading session on Saturday. Markets were closed today on account of "General Elections (Lok Sabha)". 

The equity segment, equity derivative segment and the SLB (Security Lending and Borrowing) segment remained shut. Currency derivatives, commodity derivatives and electronic gold receipts segments were also closed.

In May 2024, there are 11 stock market holidays in total, including Saturdays and Sundays.

The indexes would reopen on May 21, 2024 (Tuesday).