Nifty Bank holds above 50-DMA; fresh longs possible on a breach above 48,000: Experts

, , , and were among the top gainers while some selling was seen in , HDFC Bank and AU Small Finance Bank.

The Nifty Bank faced some selling pressure around 48,000 and now a close above this crucial level could attract in the index, suggested experts.

"The BankNifty index experienced sideways trading during the weekly expiry day, encountering resistance at the 48,000 level. To sustain the upward momentum, the index must decisively surpass this mark, targeting levels around 48,500,” said Kunal Shah, senior technical & derivative analyst at LKP Securities.

“On the downside, is positioned at 47,200, presenting favourable buying opportunities on dips toward this level,” he said.

The Nifty Bank opened higher, but it failed to hold on to the momentum. It witnessed selling pressure above 47,900 levels. The index retested 47,500 support before bouncing back in intraday trade on Wednesday.

" made ‘’ chart pattern on a daily scale suggesting buying momentum fading. 48,000 proved to be decisive resistance as bulls failed to clear that level,” said Bhavik Patel- senior research analyst, Tradebulls Securities.

The market faced selling pressure most of the day with most counter trends being too feeble. In the closing stages, the market did recover from the low point of 47,537 to about 200 points.

“Any fresh in the market is only expected to come once Bank Nifty breaches 48,000 levels convincingly. Both CE and PE additions at the lower levels of strike price between 47,400 and 48,000 suggest market participants expecting the index to trade in that range,” highlighted Patel.

“48,000 continue to remain a decisive resistance as the highest CE OI is at that level. On the downside, 47,300 and 47,100 will be next support and fresh longs should be avoided until Bank Nifty does not breach 48,000 levels,” he added.

Patel highlighted that the Put-Call ratio (PCR) has also dropped down from 0.83 to 0.76 (22 May) series suggesting bearish sentiment returning.

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