The NSE Nifty Bank index is likely to move towards 44,444 and 45,000 points, if it stays above 44,151 points touched on Monday, said experts.
Chennai, May 15,2023: The NSE Nifty Bank index is likely to move towards 44,444 and 45,000 points, if it stays above 44,151 points touched on Monday, said experts.
The Nifty Bank index of NSE on Monday crossed 44,000 mark and touched a high of 44,151.70 points
“If the index manages to stay above the previous high of 44,151, it is likely to move toward the 44,444 and 45,000 levels,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
According to Meena, the Nifty Bank index has been demonstrating strong leadership and is expected to reach a new all-time high.
“However, it is important to acknowledge the possibility of profit booking at this level. If the index manages to stay above the previous high of 44,151, it is likely to move toward the 44,444 and 45,000 levels,” Meena said.
On the downside, the rising 20-day moving average (DMA) offers a robust support level, currently located at the 43,000 level, and is expected to counter any potential pullbacks. It is worth noting that a significant profit booking may only occur if the index falls below the 20-DMA, Meena said.
From a derivative standpoint, Bank Nifty futures in current expiry (May expiry) has witnessed an increase in total open interest by 17 per cent, with price gain suggesting Long Build Up further augments the bullish view. Hence, traders can buy Bank Nifty from current levels with an appropriate risk-reward ratio, said Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities.
