Bank Nifty almost reached its lifetime high of 44,151.7 in Monday's session but closed at 44,072. Kotak Mahindra Bank and SBI contributed the most in the current leg of upmove. With all banking heavyweights contributing on a rotational basis, analysts believe that this rally might not fizzle out anytime soon
Traders having derivatives positions, should hold longs with 43,800 as stop loss. But investors who are looking for positional trades, should use the dips to go long, said Gaurav Arora, Derivatives Analyst, Religare Broking
"Since the texture has been positive and 'buy on dips' worked well, it would be prudent for investors to buy only on dips. Any dip towards 42,800-43,000 should be looked at as an opportunity to go long," Arora of Religare Broking added
According to Santosh Meena, Head of Research, Swastika Investmart, Bank Nifty index is expected to reach a new all-time high. However, it is important to acknowledge the possibility of profit booking at this level
"On the downside, the rising 20-day moving average (DMA) offers a robust support level, currently located at the 43,000 level, and is expected to counter any potential pullbacks. A significant profit booking may only occur if the index falls below 20-DMA," said Meena
Bank Nifty index has crossed above the key psychological mark of 44,000 for the first time this year and is now gearing up to approach the all-time high of 44,151.80 made last year in December
The surge in Bank Nifty is attributed to growing fundamental tailwinds. "While the ongoing sentiments are quite bullish, it is important to note that prices are currently trading near their all-time high, and therefore, the possibility of a correctional fall cannot be ruled out," said Arvinder Singh Nanda of Master Capital Services Ltd
The expected support level for a correctional fall in Bank Nifty is around 43750, where a fresh round of buying can be witnessed. On the higher side, the next resistance level will align around 44,500-45,000, according to Nanda
So far this year, Bank Nifty has rallied around 2%. The index has jumped more than 30% in the last one year, outperforming Nifty50. In the last five years, the index has rallied around 70%
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