Nifty Bank closes lower; strong support placed at 52,000: Experts

, , and closed in the green while some selling was seen in , , and .

The Nifty Bank moved in a narrow range for the past days but was able to find support above 52,000 levels. The index is likely to find resistance around 52,800-53,000 levels.

“Bank Nifty closed below its support level at 52,500, forming a small-bodied candlestick on the daily chart. The trend, however, remains positive as it closed above the critical moving average,” says Rupak De, Senior Technical Analyst, LKP Securities.

“Strong support level is at 52,000 where Put writers are present heavily while the Call writers saw a heavy position at 52,500. A close above 52,500 might induce a sustained rally towards 53,000,” he added.

The Nifty Bank opened lower, but it quickly pared losses and hit an intraday high of 52,710 but it failed to hold on to the momentum.

The index drifted lower throughout the trading session. It recouped some losses after hitting support above 52,200 levels.

“It was choppy day for Bank Nifty where the indices remained confined within range of 52,250-52,750 with no clear direction,” says Bhavik Patel- Senior Research Analyst, Tradebulls Securities.

“After opening gap down, the market tried to recover but failed to build any momentum on the upside and subsequently dropped near 52,250 where again some buying emerged,” he said.

“Bank Nifty is clearly waiting for some fresh triggers. Unwinding of PE at 52,500 and CE writing at 52,800 shows bearish sentiment of option traders,” highlighted Patel.

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