The NiftyBank has rallied more than 26 percent so far in the month of November taking the index beyond crucial resistance of 30,000 for the first time after 9 months, data showed. However, it is still trading below its record high of 32,613.
At 10:00 AM, Nifty Bank was trading 1.4 percent higher at 30,165. The rally in the index was led by gains in Bank of Baroda, Federal Bank, PNB, RBL Bank, Bandhan Bank, and ICICI Bank.
Banking & financial stocks which carry the maximum weight in the index has been one of the top-performing stocks in November lifting the benchmark indices to record highs.
Experts are of the view that the rally in Nifty Bank could meet its first resistance near 30,250, and on the downside 29,500 will be an important support to watch out for.
“Bank Nifty formed a Bullish Candle on a daily scale on Tuesday and managed to close above its immediate hurdle of 29500 zones. It relatively outperformed the benchmark index due to strong buying interest seen in Private banks,” Chandan Taparia, Derivatives & Technical Analyst at Motilal Oswal Financial Services Limited told Moneycontrol.
“Nifty Bank ended the session on Tuesday with decent gains of 700 points and now it needs to hold above 29500 zones to witness an up move towards 30,000, and then towards 30,250 zones while on the downside supports are seen at 29250 then 29000 levels,” he said.
What does technical suggest?
Technical trend is very bullish which points towards the fact that traders should not go contra at current levels. There are no signs which suggest that the trend is likely to reverse.
The Nifty Bank surpassed 30,000 on Wednesday, and the next resistance is placed at 30,211, followed by 30,595.
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