The index encountered resistance at higher levels, facing selling pressure and struggling to breach the 47,500 mark.
“On the downside, the 46,800 is the crucial support and until that is held we can expect the Bank Nifty to resume its up-move towards 48,000. Overall, the trend is positive and dips towards 46,800 – 46,600 should be used as a buying opportunity,” said Jatin Gedia, technical research analyst at Sharekhan.
With weekly expiry approaching, heightened volatility is anticipated. Traders are advised to exercise caution and implement strict stop-loss measures on both sides of the market, said Kunal Shah, senior technical & derivative analyst at LKP Securities.
Nifty Bank index has risen around 1.4% in a week, and around 7% in a month.
Tracking the momentum, the index is now trading in an overbought zone; hence, some consolidation could be on the cards.
The Relative Strength Index (RSI) is at 79.3. RSI above 70 is considered overbought. This implies that security may show pullback.(Subscribe to ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
