Nifty Bank ‘Buy-on-Dips’ Advised: Key Trade Levels to Watch For, Overview

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Nifty Bank ‘Buy-on-Dips’ Advised: Key Trade Levels to Watch For, Overview
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Thanks to heavy buying in banking and financial stocks, along with a recovery in Adani Group stocks on Friday, the domestic market indices ended sharply higher.

The key sectoral index Nifty Bank jumped 2.14% higher in Friday’s intraday trade, hitting the day’s high at 41,539.95 points and ended the session 2.04% or 830.4 points higher at 41,499.7 points on Friday, with almost all constituent stocks ending with gains.

In a note provided to Investing.com, Kunal Shah, Senior Technical Analyst at LKP Securities pointed out that the Nifty Bank index witnessed a sharp bounce back from lower levels on Friday as Nifty Bank bulls came back strong.

He noted that the index’s immediate support on the downside stands at the 41000-40800 zone, and advised traders and investors to keep a buy-on-dips approach.

“The upside hurdle continues to be at 42000, where the highest open interest is built up on the call side,” Shah added.

The public sector lender stock Bank of Baroda (NS: BOB ) was the best performer on the 12-scrip sectoral index, zooming 6.2% on Friday, followed by India’s largest public sector lender State Bank of India (NS: SBI ) and the largest private sector lender HDFC Bank (NS: HDBK ).

Barring IDFC First Bank (NS: IDFB ), all the stocks listed on the sectoral index ended Friday’s session in the green.

Further, Bank NIFTY Futures surged 1.82% or over 747 points to 41,684.85.

Santosh Meena, Head of Research, Swastika Investmart (BO: SWAF ) places the key pivot (Fibonacci) support for Nifty Bank at 40861.17, 40641.67, and 40286.37, while the resistance is placed at 41571.77, 41791.27, and 42146.57.

Benchmark indices Nifty50 closed 1.38% higher at 17,854.05 points and Sensex jumped 909.64 points or 1.52% on Friday. 

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  • mahesh unawane @mahesh unawane
    Nifty Range Between 17800 to 18100 till Thursday
    Like 0
  • Prateek Kumar Soni @Prateek Kumar Soni
    this week Bank Nifty close above 42300₹ and Nifty Close Above 18100₹
    Like 3
  • Money Magnet @Money Magnet
    wrong view ..the market will be sideways for 5 days now
    Like 2
    • PRAMOD BHANDARE @PRAMOD BHANDARE
      why do u think so?
      Like 0
    • Aswin Kumar @Aswin Kumar
      how are you saying?
      Like 0

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  • Pardeep Kumar @Pardeep Kumar
    Trap buy
    Like 3
  • Rama Talreja @Rama Talreja
    wait n buy
    Like 2
  • Nilesh Patel @Nilesh Patel
    My view - Wrong advise - sell on rise is actual trend
    Like 2
    • Nilesh Patel @Nilesh Patel
      Adani n banks are on the same boat
      Like 1
    • Nilesh Patel @Nilesh Patel
      Lic is also one more passenger
      Like 1

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