Analysts Predict Bank Nifty Index To Surpass 52,000 Amid Strong Momentum

The strong momentum in the Bank Nifty index seen on Wednesday will continue and is likely to scale past 52,000 to new highs, according to market analysts. Most bank stocks, led by private lenders, advanced during the day and the gauge closed nearly 2% higher.

After the market crashed on June 4, the consolidation in Nifty and Bank Nifty was such that both were trading near the resistance zone, indicating an upward trend, Brijesh Singh, senior technical analyst at Opulent Investment Adviser Pvt., told NDTV Profit.

The current resistance mark for Bank Nifty is 51,950, which can be "easily" scaled. "I'm looking at the index crossing the 52,500–52,600 band. The immediate support level would be 51,700," Singh said.

On the other hand, the benchmark Nifty 50 can move up towards the 23,800–23,950 mark. "If it is crossed, 24,200 would be the next target. The support stands at 23,300," he said.

The Bank Nifty remains in a buy mode, and dips should be bought aggressively for targets of 52,100–52,600, according to Kunal Shah, senior technical and derivative analyst at LKP Securities.

Indian benchmarks shed their early gains to settle mixed on bank futures expiry day as Larsen & Toubro Ltd. and Reliance Industries Ltd. dragged, while banks' stocks supported.

The NSE Nifty 50 settled 36.30 points or 0.15%, lower at 23,521.60. The BSE Sensex ended 36.45 points or 0.05%, higher at 77,337.59, marking the highest closing level since its inception. Intraday, the Nifty 50 index rose 0.45% to a fresh high of 23,664.00, and the Sensex rose 0.71% to a fresh high of 77,851.63.

Meanwhile, the NSE Nifty Bank index retained its gains and settled at the historic level of 51,398.05 on Wednesday. The index scaled a high of 51,957.00 in the morning.

Sudip Bandyopadhyay, group chairman of Inditrade Capital, said he has been bullish on large private banks given their sound financials and good PE ratios. "Efficiency in deposit mobilisation, while load growth slows, will determine the winners in the banking space."

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