Bank Nifty hits fresh record high today, climbs above 58,900; strong technical momentum shows more upside

The Bank Nifty scaled yet another record high on Monday, extending its winning streak and gaining further strength in morning trade. The index hit an intraday peak of 58,968.65 in the morning trade, rising 0.8 percent and adding 451 points from the previous close. The rally in Bank Nifty was broad-based, with all 12 constituents trading in the green.

Canara Bank stock led gains, rising 2.55 percent to Rs 149.8, followed by AU Small Finance Bank which jumped 2.54 percent to Rs 913.25. IDFC First Bank advanced 2.3 percent to Rs 82.28, while Punjab National Bank gained 1.84 percent to Rs 124.46. Bank of Baroda was up 1.83 percent at Rs 292.

Technical outlook: Bullish structure firm, say analysts

Technical indicators suggest that the Bank Nifty index remains firmly positioned for further gains, supported by a strong weekly setup and sustained momentum across private and public sector lenders.

Hardik Matalia, Derivative Analyst - Research, Choice Equity Broking, said that the index ended last week at 58,517.55, up 1.11 percent on a weekly basis. A strong bullish candle formed on the weekly chart highlighted renewed buying strength. With the index comfortably above 58,500, he said the broader structure remains sideways to bullish.

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Matalia added that Bank Nifty continues to trade above its short-term, medium-term and long-term EMAs -- the 20-day, 50-day, and 200-day -- reinforcing the positive outlook. He pegged 58,000 and 57,500 as key downside support zones, with resistance seen at 58,800 and 59,000. For further upside, he expects Axis Bank and HDFC Bank to lead strength among private banks, while SBI and Canara Bank are likely to support momentum in PSU banks.

From an options perspective, he pointed out that the maximum Call OI at 58,500 and 59,000 indicates strong resistance higher up, while maximum Put OI at 58,500 and 58,000 highlights the crucial support zones for the ongoing expiry.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the index is trading well above all major moving averages, with the RSI at 67.08 firmly in bullish territory and the Stochastic RSI holding a positive crossover. The fading weakness in the MACD histogram further signals improving momentum.

Shah flagged the 58,700-58,800 band as an immediate resistance zone. A sustained breakout above 58,800, he said, could open room for an advance towards 59,500. On the downside, the 57,800-57,700 zone -- which aligns with the 20-day EMA -- is expected to provide strong support.

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