Analysts Bullish On Bank Nifty, Eye 52,000 As Support Level

Analysts recommend going bullish on the Bank Nifty index even amid a weakness in the sectoral performance of private and state-run banks in it.

The Nifty, they said, will have a major support at 24,000, while for the Bank Nifty, it will be in the range of 52,000 to 53,000.

“I don't see a runaway rally in the markets just yet,” Aditya Agarwala, head of research and investments at Invest4edu, told NDTV Profit.

He said markets are slightly at overbought levels in the short-term time frame charts, adding he isn’t expecting major sell-offs but cool-offs.

The benchmark indices ended a volatile session flat on Tuesday after hitting record highs in early trade, weighed by banks. The NSE Nifty 50 ended 0.07% lower at 24,123.85, while the S&P BSE Sensex fell 0.04% to 79,441.45.

However, during the day, the Nifty advanced as much as 0.39% to a record high of 24,236.35 and the Sensex rose 0.48% to an all-time high of 79,855.87.

Agarwala said he expects the Nifty to “cool off” by 100–150 points, with 24,000 acting as a major support level. Yet he expects bouts of volatility in that range. “Till the time 24,000 is broken, I'm not going long on the Nifty index.”

He also sees the cool-off in the Bank Nifty to result in a sideways consolidation, adding that the major support for the index will be in the 52,000–53,000 range. In addition, he expects 52,000 to be the stop-loss and 53,000 to be the target.

Agarwala also expects large lenders like HDFC Bank Ltd. to outperform. “I wouldn't mind going long on Bank Nifty at current levels.”

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