The Nifty Bank closed in the green for the sixth day in a row to close above the 47,000 level on Tuesday. The index rose over 500 points to close at 47,094.
The Nifty50, on the other hand, hit a fresh record, ending slightly below 22,200.
HDFC Bank, Axis Bank, Kotak Mahindra Bank and IndusInd Bank led the gains while some profit booking was seen in Federal Bank, Bandhan Bank and AU Small Finance Bank.
The Nifty Bank index closed above the 50-DMA set at 46,807 on the daily chart for the first time since January 17, 2024, which is a positive sign for the bulls.
The index retook the 47,000 level amid strong momentum seen in the benchmark indices. The next target is seen around 48,000. Therefore, traders can look to buy the dip.
“Bank Nifty was clearly the leader today (Tuesday) with major contributions coming in from heavyweight HDFC Bank. We expect the Bank Nifty to continue with the momentum and target levels of 48,600,” said Jatin Gedia – technical research analyst at BNP Paribas Sharekhan .
The Nifty Bank, which opened marginally lower, gained momentum during the day to reclaim the 47,100 level. The index saw marginal selling pressure around higher but managed to close above 47,000.
On the downside, the immediate support for the index is placed at 46,700 levels, experts suggested.
“The BankNifty bulls maintained their dominance, closing above the 47,000 level, signaling a strong buying mode. Immediate support is now established at 46,700, marked by fresh writing,” said Kunal Shah, senior technical and derivatives analyst at LKP Securities.
“The index is forecast to reach the short-term target of 48,000, with any dip seen as a buying opportunity,” he said.
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of the Economic Times)