Nifty Bank: Key levels to watch out for on Monday – Blue Barrows

Nifty Bank opened with a gap-down of more than 230 points and moved in line with the broader market. It witnessed weakness till the 40,500 zones and closed with a loss of around 430 points. Although the banking index corrected by more than a per cent on Friday after scaling a new peak of 41,840.15 on Thursday, analysts say the broader trend has still not turned negative for the index. Hence, a relative outperformance could continue in this sector.

Bank Nifty has support at 40,000 levels, while resistance is placed at 41,400.

Here’s how analysts read the Nifty Bank pulse:

Chandan , VP,
Nifty Bank formed a small-bodied Bearish candle on the daily scale and an inverted hammer on the weekly frame. Now, till it holds below 41,000 zones, weakness could be seen towards 40,500 and 40,250 zones, whereas resistance is at 41,250 and 41,500 zones.

Ruchit Jain, Lead Research,
For this index, 40,300 would be seen as crucial short-term support. The dollar index has been rising again post US inflation numbers on Wednesday. This would be negative for equities, and until we see a reversal there, the risk of a sharp correction in the short term is likely to remain high.

Kunal Shah, Senior Technical Analyst at
The Bank Nifty index witnessed some profit booking at higher levels after being an outperforming index. The index will resume its uptrend once it closes above 42,000, where a significant amount of call writing has been witnessed. The downside support stands at 40,000-39,800, and any dip toward that would be an opportunity to buy.

Mohit Nigam, Head – PMS, Hem Securities
Key resistance and support levels for Nifty Bank are at 41,500 and 40,300, respectively.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)