Bank Nifty Outlook for the week 2nd MAY to 5th MAY

 

BANK NIFTY

Bank Nifty ended the week at 43233.90, which is a gain of 2.65% compared to the previous week's closing. During the week, Index reached a low of 42810.35 and a high of 43302.05

One of the top gainers in the Bank Nifty index during the week was IDFC First Bank, which gained 8.86% during the week while AXISBANK ended with a marginal loss of 0.49 percent. The Index has currently surged above the support of the 20 DMA, forcing the bears to remain on the sidelines. 

Bank Nifty May Future trading is trading at a discount of 3.8 points.

Bank Nifty Put options OI distribution shows that 42000 have the highest OI concentration, which may act as support for the current expiry. Bank Nifty Call strike 44500 followed by 44000 witnessed significant OI concentrations and may act as resistance for the current expiry. 

The weekly RSI has also crossed the 60 level trading at 61 levels. MACD weekly has given a bullish crossover indicating the bulls are getting stronger over the bears, And also Adx weekly positive DMI has crossed above the negative Dmi which shows some bullish momentum in Index. CNX PSU BANK has given a weekly close above the 20 MA. The CNXPSUBANK has successfully managed to close above the resistance 4045 level.

Additionally in Private Banks- ICICIBANK and HDFCBANK could lead the Index to move on the higher side. While in PSU Bank – CANBK and SBIN can hold the command. Technically, the Bank Nifty continued its upward trend of higher highs and lower lows and made a bullish candle on the daily charts, while it also continued its upward trajectory of higher tops and lower bottoms for the fifth consecutive week on the weekly scale forming a bullish candlestick pattern.

                                                                                                                                                      

Volatility has fallen dramatically, giving bulls more comfort. The fear index India VIX has been at its lowest level since December 2019.

Global stocks ceded earlier gains as data showing economic resilience and persistent inflationary pressures cemented expectations of further interest rate hikes in the U.S. and Europe.

The Bank Nifty started the month with a relatively high OI base.  Going forward, Indian equities are on track to end the month 9.2% higher, as corporate results have lifted investor sentiment of pausing of Interest rate by RBI.