Nifty Bank Overview and Outlook, Action Levels

By Malvika Gurung

Investing.com -- The domestic market ended the last week of FY23 on a strong note with benchmark indices jumping 2.5% each in the holiday-curtailed week and upto 2% higher on Friday.

Key sectoral index Nifty Bank rallied 1.95% in Friday’s intraday trade, hitting the session’s high at 40,690.4 points, and ended the day 1.75% or 698.5 points higher at 40,608.65 levels on March 31, with all constituent stocks ending in the green except one.

In a note provided to Investing.com, Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities stated that the Nifty Bank bulls came back strong on Friday, and the index surpassed the hurdle of 40,000 with buying action throughout the day.

He noted that the breakout confirms the positive momentum and advises investors to keep a buy approach with immediate support at 40,200.

The sectoral index closed above the past 10 days' high with a sharp surge in volumes which confirms the strength of the index, and surpassed its 200 DMA, which acts as a change of polarity, Shah added.

The small finance lender AU Small Finance Bank (NS: AUFI ) was the only stock in the 12-scrip sectoral index that ended the session with losses.

On the flip side, Bandhan Bank (NS: BANH ), ICICI Bank (NS: ICBK ) and Bank of Baroda (NS: BOB ) led the gains on the sectoral pack, jumping over 3% on Friday.

Further, Bank NIFTY Futures surged 1.52% or 610.4 points to 40,832 levels.

Benchmark indices Nifty50 jumped 1.63% to 17,359.75 points and Sensex rallied 1,78% or 1,031.43 points.

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