Nifty Bank: Key levels to watch out for on Tuesday

After forming a small-bodied bullish candle on the daily scale, the Nifty Bank index closed the day with a gain of around 75 points. The index has been consolidating in the range of 40,500-41,500, and analysts say traders should brace for volatility in the coming days and trade on both sides.

Nifty Bank, which is near its 52-week high, was trading above 7 out of 8 SMAs. The index has to hold above 41,000 zones for an up move towards 41,250 and 41,500 zones, whereas supports are placed at 40,500 and 40,250 zones.

Here’s how analysts read the Nifty Bank pulse:

Ruchit Jain, Lead Research, 5paisa.com
The Nifty Bank index so far has relatively outperformed the Nifty index, where reversal is yet to be seen. The support for Nifty Bank is placed around 40,400, below which it would enter a price-wise corrective phase.

Kunal Shah, Senior Technical Analyst at
Nifty Bank witnessed consolidation in the range of 40,500-41,500, and this is likely to continue ahead of the US FOMC meeting lined up this week. On the derivative front, the highest Open Interest on the Call side is built up at 41,500, and support is visible at 40,000, whereas the highest Open Interest is built up on the Put side. Traders should brace for volatility in the coming days and should trade on both sides.

Chandan , Limited
The index has to hold above 41,000 zones for an up move towards 41,250 and 41,500 zones, whereas supports are placed at 40,500 and 40,250 zones.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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