Bank Nifty crosses 55,000-mark for first time since August 25; analysts say 54,400 is strong support

Bank Nifty crosses 55,000-mark for first time since August 25; analysts say 54,400 is strong support

Bank Nifty crossed 55,000-mark on September 15, a level that was seen last on August 25.

The index, which has 12 constituents, hit day's high of 55,018 on September 15 before paring gains to trade at 54,960 (up 0.24%) at 1:25 pm.

The gains on the index were led by Canara Bank and Federal Bank, which rose 0.85% each, followed by Punjab National Bank (0.74%) and AU Small Finance Bank (0.37%).

What analysts say

Meanwhile, analysts said 54,400 is a strong support for the index and it can even extend its gains to 56,000 level.

Choice Broking said the index will see further upside once it crosses 55,150.

"If the index decisively crosses 55,150, it could open the door for further upside towards 55,500 and 56,000 levels. On the downside, immediate support is placed at 54,400. A sustained breakdown below this level could invite fresh selling pressure, with downside targets at 54,000 and 53,636.

"Technical indicators are also leaning towards a bullish bias. The RSI, currently around 49.68 and trending upward, suggests improving momentum. Moreover, Bank Nifty is trading above both the 20-day and 200-day EMAs and is now approaching its 50-day EMA. A decisive close above the 50-day EMA would further strengthen the bullish outlook.

"Given the current price structure, traders are advised to adopt a cautious yet constructive approach. Strict risk management is essential, with 55,150 on the upside and 54,400 on the downside serving as critical levels to determine the next directional move in Bank Nifty," said Choice Broking.

Bank Nifty support is at 54,500 then 54,250 zones while resistance at 55,000 then 55,250 zones. Now it has to hold above 54,500 zones for an up move towards 55,000 then 55,250 zones while on the downside support is seen at 54,500 then 54,250 levels, said Motilal Oswal.

For Bank Nifty, the 20-day SMA and 54,300 levels could act as key support zones. Above these levels, the pullback could continue towards 55,300–55,500 or the 50-day SMA. Conversely, if the index declines below 54,300, it could retest levels around 54,000–53,700, said Shrikant Chouhan, Head Equity Research, Kotak Securities.