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Nifty Bank Overall Sentiment and Key Levels in Focus, Futures Dip 94 Pts

Published 25-06-2023, 06:10 pm
© Reuters.
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By Malvika Gurung

Investing.com -- The domestic market snapped a winning rally last week, with benchmark indices Nifty50 and Sensex falling 0.85% and 0.64%, respectively, during the week.

Key sectoral index Nifty Bank declined for the second consecutive session on Friday and ended 0.23% or 101.95 points lower at 43,622.9 levels on June 23, with most constituent stocks ending in the red. 

In a note provided to Investing.com, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities stated that the Nifty Bank index witnessed an ongoing battle between the bulls and bears throughout the week.

The index faces resistance at the 44,000 level, where the highest open interest is built up on the call side, he noted, while support is observed at the 43,500 PE level, where put writers are active.

The analyst is of the view that a break on either side of the aforementioned range is likely to result in a directional move for the sectoral index.

“However, the overall sentiment remains bearish as long as the index stays below the 44000 level,” Shah said.

Private sector lender Federal Bank (NS:FED) led the losses on the 12-scrip index, falling 1.65% on Friday, followed by SBI (NS:SBI) and Bandhan Bank (NS:BANH).

On the flip side, three constituent banking stocks gained in the previous session, led by a 3.6% jump in IndusInd Bank (NS:INBK).

Further, Bank NIFTY Futures dropped 94 points or 0.21% to 43,680 levels.

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