Nifty Bank faces resistance around 47K for 4th session; what traders should do

"The Bank Nifty experienced a sideways trading session, marked by consolidation, but towards the end, bullish momentum prevailed. Despite this consolidation, the index closed just below its 20-day moving average (20DMA), positioned at 46,950,” said Kunal Shah, senior technical & derivative analyst at LKP Securities.

“A decisive break above this level is anticipated to trigger sharp short-covering moves towards the 48,000 mark,” he said.

“However, the index finds support around the 46,500-46,400 zone, and a breach below this level could lead to increased selling pressure,” recommended Shah.

The Nifty Bank opened higher and hit a high of 46,956 but failed to hold on to the momentum. The index witnessed a decline throughout the trading session, which took it towards 46,600 levels.

The index recovered in the last 60 minutes of the trade to close at 46,785. A breakout above 47,000 could push the index higher.

"Nifty Bank again faced supply pressure around the 47,000 psychological level as it slipped back towards the 46,900 zone. This is the fourth consecutive session wherein the index remained confined within the 47,000-46,500 zone,” said Sacchitanand Uttekar. VP- Research (Technical & Derivatives), Tradebulls Securities.

“Both its trend strength indicators are diverging as RSI hovers near its 50 level while ADX is on the verge of breaking above its 25 mark,” he said.

“If Wednesday’s high is breached, the immediate resistance zone is placed at 46,900-47,275 while support levels are at 46,500-46,250 for the final session of the march series,” recommended Uttekar.

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