Nifty Bank Jumps, Nifty Bank Futures Adds 566 Pts: What Do Charts Suggest?

By Malvika Gurung

Investing.com -- The domestic market indices ended higher on Tuesday, following an overnight relief rally on Wall Street and positive global cues, with expectations of the Fed resorting to a less-aggressive stance at the policy meeting this week.

Key sectoral index Nifty Bank surged 1.54% in Tuesday’s intraday trade, hitting the session’s high at 39,970.9 points and ended the day 1.35% or 532.75 points higher at 39,894.7 levels on March 21, with all constituent stocks ending in the green except one.

In a note provided to Investing.com, Rupak De, Senior Technical Analyst at LKP Securities stated that the Nifty Bank index has given a consolidation breakout on the daily chart, which suggests a rise in optimism.

The momentum oscillator has entered a bullish crossover, he said.

The trend in the banking space is likely to remain positive over the short term as long as the sectoral index remains above the 39,500 mark, stated De.

“On the higher end, immediate resistance is placed at 40000. A move above 40000 may induce a rally towards 41000,” he added.

The public sector lender Bank of Baroda (NS: BOB ) was the top gainer on Nifty Bank, gaining almost 3% on Tuesday, while private lenders Axis Bank (NS: AXBK ) and IDFC First Bank (NS: IDFB ) led the rally on the sectoral pack.

Barring Federal Bank (NS: FED ), all the stocks under the 12-scrip sectoral index ended Tuesday’s session radiantly in green.

Further, Bank NIFTY Futures jumped 1.43% or 565.8 points to 40,048.15.

Benchmark indices Nifty50 gained 0.7% to close at 17,107.5 points and Sensex added 445.73 points or 0.77%.

Read Also: Banks, Financials Revive Gains on D-St: Nifty Surpasses 17,100, India VIX Slumps