The index has support at 40,000 levels while resistance stood at 41,500 levels. Nifty Bank was trading above 6 out of 8 SMAs. The MACD was also above its center and signal line, which is a bullish indicator.
Here’s how analysts read the Nifty Bank pulse:
Kunal Shah, Senior Technical Analyst at
Nifty Bank witnessed selling pressure at higher levels and remains in a sell-on-rise mode as long as it stays below the level of 42,000. The index immediate downside support stands at 40,500 and a breach below this will open gates for further downside toward 39,000 level. The index is trading in a tight range between 40,000-42,000 and a break on either side will give a directional move to the index.
It formed a Bearish candle on a daily scale with a long lower shadow. Now it has to cross and hold above 40,750 zones to continue the positive momentum towards 41,000 and 41,250 zones while on the downside support exists at 40,500 and 40,250 levels.
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