Nifty Bank bounces back, reclaims 52,500 levels; buy on dips, suggest experts

, , and closed with gains while selling was seen in , , and .

The momentum remains strong, and traders can look to buy the stock on dips, suggest experts. In the near-term resistance is seen at 53,000 levels.

"The Bank Nifty index witnessed a consolidated move and is stuck in a range between 52,700-52,100. A decisive break on either side will lead to trending moves,” says Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

“The index remains in a buy-on-dip mode, and a break above 52,700 will open up further upside towards 53,000, where the highest open interest is built up on the call side,” he said.

“However, if the index fails to hold the support of 52,100-52,000, it can decline further towards the 51,700-51,500 mark,” recommended Shah.

The Nifty Bank opened lower and quickly slipped below 52,300 levels in morning trade. However, it witnessed a strong bounce back to reclaim 52,600 levels.

“Nifty Bank remained confined within its previous days, trading range of 52,240-52,710 but displayed a smart recovery from its day's low to end the day near its high point of the session,” Sacchitanand Uttekar, VP-Research (Technical & Derivatives), Tradebulls Securities, said.

“A close above its 5 DEMA level of 52640 would confirm the improvement in trend strength for the coming session which could push the index back towards the 53200 zone during this week itself,” he said.

Confident PE writing around 52,500 & 52,200 strikes too compliment the immediate support to remain intact, data showed.

“Hence, it is ideal to retain longs until Nifty bank trends above its 5 WEMA support of 51,820. Momentum is likely to unfold once the index swings back above the 52,720 zone in the coming session,” recommended Uttekar.

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