Nifty Bank Bulls and Bears Try to Exert Control, Key Support & Resistance Levels

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Nifty Bank Bulls and Bears Try to Exert Control, Key Support & Resistance Levels
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The domestic market ended the May 26-ended week on a flat note while snapping a two-day losing streak in Friday’s session. Benchmark indices Nifty50 and Sensex made marginal gains of 0.19% and 0.07%, respectively in the period.

Key sectoral index Nifty Bank gained 0.7% in Friday’s intraday trade and closed the session 147.65 points or 0.34% higher at 43,937.85 levels, with all constituent stocks ending in the green except one. 

In a note provided to Investing.com, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities stated that the Nifty Bank index is currently witnessing a fight between the bears and the bulls, indicating a state of indecision in the market.

He notes that both sides are actively participating and trying to exert control over the index.

A support level is seen at 43,500, which suggests a price level where buyers have shown interest and may provide a cushion for potential downside movements. On the flip side, resistance can be seen at 44,200 levels which acts as a barrier for upward movements. At this level, sellers are expected to become more active.

It must be noted that a break on either side of the support or resistance levels can lead to directional moves in the Nifty Bank index, stated Shad.

“If the index breaks below the support at 43500, it may signal a bearish move with a potential downside momentum. Conversely, if it breaks above the resistance at 44200, it may indicate a bullish move with potential upside momentum,” he added.

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