Bank Nifty at new record high; positive momentum may extend rally to 49,000

The Bank Nifty index surged to a new record high during trading session on April 8, reaching 48,716.95, fueled by market exuberance. According to experts, HDFC Bank, the top constituent of Bank Nifty, has been gaining momentum along with peers Axis and IndusInd Bank since last week. This positive trend has resulted in buoyant sentiments for the Banking Index.

A decisive move above 48,750 could potentially drive the index towards 49,500. Rupak De, Senior Derivative Analyst at LKP Securities, noted, “Bank Nifty remained strong as it sustained above 48,500 during the first half of the session. However, it encountered initial resistance around the previous swing high on the daily chart at the higher end. Looking ahead, a decisive move above 48,750 could potentially propel the index towards 49,500 and beyond. Conversely, sentiment might weaken if it falls below 48,300.”

Sudeep Shah, DVP and Head of Derivative and Technical Research at SBI Securities, remarked, “As long as the Index holds above its crucial supports placed at 48,250, the current positive momentum could extend towards the zone of 48,850-49,020. If the index slips below 48,250, it will lead to further selling pressure in the index down to the 47,950-47,830 level.”

Shah also highlighted from an Open Interest (OI) perspective, “Banknifty PCR is currently above 1.20, with significant call writing seen at 48,500-48,700 strikes and 48,500-48,400 puts, implying a range of 48,200 to 49,000 for the next few days with a bullish bias.”

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