Bank Nifty Outlook for the week 24th April to 28th April

BANK NIFTY

On the weekly chart, Index made a high of 42603.55 and closed the session at 42118. The index has

closed with a marginal loss of 0.03 percent compared to last week forming a bearish candle in the weeklychart.  

In the Daily chart, Index is sustaining above 100 EMA and would be acting as important support.

An indicator such as RSI currently remains at 57 levels while MACD is skewed on the positive side. In Private Banks- we expect ICICIBANK and AXISBANK could be front runners. While in PSU Bank – SBIN and

BANK BARODA may reveal some expansions in the coming week.

Bank Nifty April Future trading with premium with 7 points.

BankNifty Put options OI distribution shows that 41000 followed has the highest OI concentration, which

may act as support for the current monthly expiry. Bank Nifty Call strike price of 42500 followed by 43000

witnessed significant OI concentrations and may act as resistance for this expiry.

Index has traded in a very narrow range in the past week suggesting some indecisiveness among call-and-put writers. Simultaneously volatility Index has been slowed down which led to a shrinking premium price

suggesting bulls could dominate in the upcoming few weeks.  Currently, Index is consolidating in a defined

range, it would catch up with directional movement once it sustains above 42600 levels.

A strong base is placed around the 41400 zone. However, banking stocks were primarily responsible for

holding back Nifty, as almost all banks appeared to be somewhat fatigued, and it appears that some sort

of small correction cannot be ruled out. Upcoming quarterly results of ICICIBANK, INDUSINDBK and

AXISBANK would be a key trigger for next week as well. It is now time to review one's portfolio to see what can be added or reduced.