Bank Nifty Will Lead The Benchmark, Says Analyst

The market has been witnessing range-bound activity for the last two days.

<div class="paragraphs"><p>(Source: Gerd Altmann/Pixabay)</p></div>
(Source: Gerd Altmann/Pixabay)

The Bank Nifty will play a vital role in leading the NSE Nifty 50 in the equity markets, according to Soni Patnaik of JM Financial Services Ltd.

The Bank Nifty has seen aggressive rollovers along with bets being taken on the longer side of the trade, the assistant vice president of equity derivatives research told NDTV Profit on Tuesday.

Patnaik highlighted that the index tested its first level of resistance zone at 47,500 to 48,000. She said if the index goes above 48,000/200, then it could snap its all-time high of 48,600.

"The Bank Nifty has a strong support at 47,000. The risk-reward ratio is also very favourable for the index and most likely, this is the index which will lead the Nifty ahead," Patnaik said.

On the benchmark index, she pointed out that there is a sideways trend visible with a strong support at 22,200/300. "Maybe a day or two of such consolidation sideways movement. There is a resistance around (the) 22,550/600 range," Patnaik said.

She underscored that the moment the benchmark could take out the resistance, the index would move towards higher levels of 22,800 to 23,000.

Bank Nifty Will Lead The Benchmark, Says Analyst
Bank Nifty Will Lead The Benchmark, Says Analyst

The NSE Nifty 50 ended 8.70 points or 0.04%, lower at 22,453.30, while the S&P BSE Sensex fell 110.64 points or 0.15%, to close at 73,903.91.

The market has been witnessing range-bound activity for the last two days, according to Shrikant Chouhan, head of equity research at Kotak Securities Ltd.

"For the traders, 22,350/73,700 and 22,500/74,100 would act as key levels for Nifty and Sensex, respectively, to watch," he said. "On the higher side, above 22,500/74,100, the market could rally till 22,600–22,650/74,500–74,600. On the flip side, dismissal of 22,350/73,700 could accelerate the selling pressure."

On the defence sector, Dharmesh Kant, head of equity research at Cholamandalam Securities Ltd., is bullish on Hindustan Aeronautics Ltd. The order book of the company has increased from Rs 60,000 crore to around Rs 94,000 crore as it has signed many long-term orders.

In the railways sector, Kant is positive about Rail Vikas Nigam Ltd. He said that after the Lok Sabha election, this area would witness a lot of action as the Union government would come into power along with the full-fledged budget.

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