Bank Nifty hit 55,000 mark after three weeks
What's the story
Bank Nifty, a major stock market index comprising 12 banks, hit the 55,000 mark on September 15. The last time this level was reached was on August 25. The index touched an intraday high of 55,018 today before paring some gains to trade at around 54,887 at the time of writing. Canara Bank and Federal Bank were the biggest contributors to today's gains, with both rising by 0.85% each.
Market forecast
Immediate support at 54,400, resistance at 55,150
Analysts are optimistic about the future performance of Bank Nifty. They believe that if the index crosses 55,150 decisively, it could pave the way for further gains toward 55,500 and even 56,000 levels. However, they also warn that a sustained breakdown below immediate support at 54,400 could trigger fresh selling pressure with potential downside targets at 54,000 and 53,636.
Market analysis
Technical indicators show bullish trend for Bank Nifty
Technical indicators also hint at a bullish trend for Bank Nifty. The Relative Strength Index (RSI) is currently around 49.68 and rising, indicating improving momentum. Further, the index is trading above both its 20-day and 200-day Exponential Moving Averages (EMAs) while nearing its 50-day EMA. A decisive close above this level would further strengthen the bullish outlook for Bank Nifty.
Trading strategy
Traders advised to adopt cautious approach toward Bank Nifty
In light of the current price structure, traders are advised to adopt a cautious yet constructive approach toward Bank Nifty. Strict risk management is essential, with 55,150 on the upside and 54,400 on the downside serving as critical levels for determining future directional moves in this index. This advice comes from Choice Broking, which also noted that technical indicators are leaning toward a bullish bias.