Nifty Bank 9 Feb Expiry: Traders Looking at Massive ‘2,500-Point Range’!

  • Stock Market Analysis
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The banking space did well in the last two sessions of the week, helping the banking benchmark index, Nifty Bank to rally 1,154 points for the week to close at 41,499.7. PSU banks took charge before ending the week as the Nifty PSU Bank index gained 3.07% to 3888.6, on Friday alone. It seems like investors are now gaining their lost confidence in the financial institutions as more details on their exposure to Adani Group are surfacing.

However, the beating that these banks have taken in the recent past is significantly more than the recovery so far. Looking at the price charts of these banking stocks, the ongoing recovery seems more of a bounce back from the oversold zones, rather than a new uptrend. However, from the short-term perspective, as the sentiments are becoming positive with still a downtrend, the index is expected to move in a range as the tussle between bulls and bears would continue for the next week, just like the Nifty 50 index.

Nifty also rallied 1.38% to 17854.05 on Friday, but still, the immediate resistance of 18,000 is intact. SGX Nifty took a breather and fell around 40 points to close exactly at 17,800 on account of a sell-off in the US markets. The buying spree from the bottom followed by selling pressure from the top end of the range is denoting a range-bound trend. The range analysis for the Nifty 50 index has been discussed in one of my earlier analyses, the link to which is at the bottom of this article.

Image Description: Daily chart of Nifty Bank (spot)

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Coming back to Nifty Bank, there had been a humongous volatility seen on the budget day as the index rallied to a high of 42,015.65 before dropping to a low of 39,490.5. That’s a massive 2,525-point high-to-low one-day range! As these levels are of a key event day (Budget 2023), their importance is relatively higher. This range hasn’t been broken yet on either side.

For the 9 February 2023 expiry, the resistance of the index is around 42,000, while for the support, investors can look at a demand zone of 39,400 - 39,500. This is a massive range and a difficult one to trade, but it is what it is. The extreme volatility has expanded the range of the index and increasing the stops while lowering the quantity is an apt way to go about in these conditions.

Read More: Nifty 50 Decouples from Adani Group Stocks; Here’s the Range to Trade!

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  • Sunny Menon @Sunny Menon
    SHOULD MOVE ABOVE 41589 THEN 41717,41783 BELOW 41307 TRGT 40710
    Like 1
  • Krishna Kumar @Krishna Kumar
    It will test 41000 and it may go 41800 ! It adani issue clears it mat go above! All depends on pc ratio and position !!
    Like 2
  • Basu Yeruva @Basu Yeruva
    I expect 42400 /42800 next week possible
    Like 6
  • Amitabh Rajan @Amitabh Rajan
    I think looking at 15 min chart the Nifty needs to correct 100 points before final take off towards 18050-18100. I don't see 18100 breaching before 15-20 feb 2023.
    Like 6
  • Manav Bhopal @Manav Bhopal
    42000par sell karo 39000 par buy karo
    Like 4
  • ajay gautam @ajay gautam
    sell in bank nifty
    Like 3
  • Maharshi Jani @Maharshi Jani
    monday sir banknifty ce call can be
    Like 3
  • Harlal Singh @Harlal Singh
    sir for Monday gap up
    Like 2
  • Balwinder Singh Singh @Balwinder Singh Singh
    how can we trade banknifty on this expiry
    Like 0

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