Nifty Bank climbs Mt 53K; here are important levels to track on Friday

The Nifty Bank climbed above 53,000-53,100 for the first time in intraday trade on Thursday but failed to hold the momentum and closed marginally in the red.

The index hit a record high of 53,180, but pared most of the intraday gains to close with a loss of 59 points at 52,811.

IndusInd Bank, Axis Bank and Kotak Mahindra Bank were among top gainers while selling was seen in IDFC First Bank, Bandhan Bank, AU Small Finance Bank and PNB.

The Nifty Bank climbed above crucial resistance levels above 53,000 on Thursday but witnessed mild profit-taking at higher levels.

The next big resistance is placed at 53,500 levels, suggested experts. On the downside, support is seen around 52,000-51,800 levels.

“Bank Nifty faced resistance around the 53,200 mark and closed in the red after rallying ~2,000 points in the last four trading sessions,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

“A negative crossover on the hourly time frame charts suggests that the probability of consolidation is high. In that case, there can be a dip towards 52,200 (40-hour average). On the upside 53,660 is the immediate hurdle,”
he said.

The bank index opened higher and hit a fresh record high in the morning trade but failed to hold the momentum and drifted in the red in the second half of the session.

"The unstoppable rally in Bank Nifty paused on Thursday. In the initial stages, it seemed that the rally would extend as we saw a sharp upside move from the lows of 52,670 till 53,180 before the index gave up most of its gains,” Bhavik Patel- Senior Research Analyst, Tradebulls Securities, said.

“Any decline may be a short-term correction, effectively letting off steam and clearing the way to the upside looking at the overbought state of the market but traders still should be wary in carrying any overnight positions and should instead stick with intraday trades,” he said.

“Levels of 53,200 and 53,500 are the next immediate resistance while 52,350 and 52,000 is the support. The main bullish trend will only be under threat if Bank Nifty trades below 51,800,” recommended Patel.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)