Bank Nifty hits fresh record high above 59,400; technical indicators bullish despite narrow breadth

Bank Nifty at record high

The Bank Nifty climbed to a fresh all-time high on Thursday, crossing 59,400 for the first time ever and extending its strong upward trajectory in November. The index rose to an intraday high of 59,440.1. It ended at 59,340.55, up 0.21 percent for the day. With this, the banking gauge has gained 16.33 percent year-to-date, comfortably outperforming the Nifty 50, which has returned 10.42 percent during the same period.

The advance came despite weak breadth, with only two of Bank Nifty's 12 constituents ending in the green. HDFC Bank shares led gains, rising 1.41 percent to Rs 1,008.6, followed by Axis Bank, up 1.24 percent at Rs 1,286.2. Among laggards, Bank of Baroda fell 1.77 percent to Rs 288.1, IndusInd Bank slipped 1.17 percent, and Canara Bank declined 1.62 percent.

Bank Nifty technical outlook: Bullish bias reinforced

Analysts said that the index continues to show firm bullish structure, supported by momentum indicators and price action.

Rajesh Palviya, Head-Technical Research at Axis Securities, said the Bank Nifty printed a bullish candle with a lower shadow -- signalling strong buying support at lower levels and reinforcing the positive undertone. The short-term price regime remains in an uptrend, with the daily RSI moving upward and positioned above its reference line, indicating a positive bias.

• Also read | Reliance Industries share price rises nearly 2% today; brokerages bullish on O2C rebound, new energy scale-up

He pegged the trend-deciding level at 59,056 for the session. A sustained move above this level could push the index towards 59,424-59,632-60,000. On the other hand, a slip below 59,056 may trigger profit-booking toward 58,848-58,481-58,273.

The brokerage also flagged strong market internals, with 83 percent of Bank Nifty stocks trading above their 5-day and 20-day SMAs and an advance-decline ratio of 5.0, underscoring the strength of the trend despite today’s narrow leadership.

Asit C Mehta Investment Intermediaries said the index has formed a bullish candle on the daily chart, indicating strengthening momentum. They placed immediate support near 58,580, with key resistance at 59,220 -- a trendline hurdle. A sustained breakout above 59,220 could open the way for a move toward 59,500-59,700, the note said.

Choice Equity Broking also shared a positive view, citing a strong bullish candle that highlights sustained momentum. The brokerage marked 58,900 as critical support, with a breakdown risking a measured decline toward 59,100. On the upside, resistance lies at 59,300, and a decisive breakout could propel the index toward 59,500.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.