Bank Nifty Snaps 3-Day Losing Streak Amid Value Buying
The Bank Nifty snapped its three-day losing streak on Tuesday, rising more than 2 percent amid value buying in banking shares. The index had declined over 7 percent in the previous three sessions.
The banking benchmark opened on a positive note and ended the day at 52,605.65, up 2.27 percent. On the daily chart, the index formed a small-bodied candle with shadows on both sides, indicating indecision following the recent pullback, analysts said.
Technical Analysis
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the 53,000–53,100 zone will act as immediate resistance for the index. Technical analysis suggests that a sustained move above 53,100 could extend the pullback rally towards the 53,600 level in the near term. On the downside, the 52,200–52,100 zone is a crucial support region for Bank Nifty.
Top Gainers
Among constituents, Federal Bank was the top gainer, rising over 3 per cent. Index heavyweight HDFC Bank also snapped its four-session losing run to settle 3 percent higher at Rs 766.50 per share on the NSE.
The stock gained after the bank appointed two domestic law firms and one US-based law firm to review a resignation letter from former part-time chairman Atanu Chakraborty, according to a Reuters report. To know more about HDFC Bank news, click here.
Market Outlook
Analysts at Bajaj Broking said the Banking index formed a bullish candle with a higher high and a higher low, signalling a pullback after the previous session’s sharp decline. They added that volatility is likely to remain elevated in the near term due to rising geopolitical tensions and higher crude oil prices, which continue to weigh on overall market sentiment.
The index is expected to consolidate in the 51,400–54,700 range in the coming sessions. A breach below 51,400 could trigger further downside towards 50,700 and 50,000 levels. On the upside, a move above Tuesday’s high of 52,950 may lead to a further pullback towards 53,800 and 54,700 levels, they said, adding that the index needs to sustain a higher high and higher low formation and close above 54,700 to signal a pause in the downtrend.
Sensex and Nifty Rebound
Meanwhile, the benchmark stock indices Sensex and Nifty rebounded by nearly 2 percent, tracking a rally in Asian peers after US President Donald Trump announced a temporary halt on strikes targeting Iranian energy infrastructure.
The Sensex jumped 1,372.06 points or 1.89 percent to settle at 74,068.45. During the day, it soared 1,793 points or 2.46 percent to 74,489.39. The Nifty surged 399.75 points or 1.78 percent to end at 22,912.40.
For more information on Nifty and Sensex news, click here.
Conclusion
In conclusion, the Bank Nifty index snapped its three-day losing streak on Tuesday, rising more than 2 percent amid value buying in banking shares. The index is expected to consolidate in the 51,400–54,700 range in the coming sessions.
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