Nifty Bank Prediction for this week, 22-24 March 2023: Yesterday, the Nifty 50 and Nifty Bank experienced a significant increase. The Nifty 50 and Nifty Bank gains of 0.7% and 1.35%, respectively. The boost was attributed to a positive global market trend. Banking and financial stocks were the major contributors to the upswing.
HDFLIFE, RELIANCE, and BAJFINANCE were the top three gainers in the Nifty 50 index. But, BANKBARODA, IDFCFIRSB, and AXISBANK were the top three gainers in the Nifty Bank index.
The recent UBS takeover and the ongoing Credit Suisse saga have increased confidence in banking stocks worldwide. Now, investors are hopeful that the Federal Reserve will announce a softer policy stance. There is still risk with the upcoming Fed policy announcement. But traders and investors have taken advantage of the market downturn and invested in many beaten-down stocks.
It is likely that the Indian benchmark indices will continue to rise and move toward key resistance areas throughout the week. But traders and investors should keep an eye on any unexpected shocks from global markets as well.
Nifty Bank Movement Yesterday: 21 March
Nifty Bank got off to a strong start yesterday, opening at 39599.65. It was a gap up of around 250 points from the previous day’s close of 39361.95, thanks to positive global cues. However, the index slipped to a low of 39366.30 in the first half of the day, amid weak performance from frontline bank stocks.
But as the day progressed, ICICIBANK and PSU banks led the rally and helped the index make a high of 39970.90. The closing price of the Nifty Bank was 39894.70, which was 1.35% up from its previous closing price.
The most notable thing about yesterday’s move in Nifty Bank was the breaking of the key hurdle area at 39800 on a closing basis. This setup of Nifty Bank may open doors above 40000 for this week, as the index continues to gain momentum.
Nifty Bank Prediction for this Week: 22-24 March 2023
Nifty Bank is approaching a key resistance area, which makes it an important development to keep an eye on. Yesterday’s breakout above the key supply zones of 39500 and 39600 in Banknifty is a positive sign. For this week, maintaining an upward momentum above this level will be crucial.
However, the leading indicators on the chart are showing a slight overextension on the upside, which might lead to a minor pullback from the current level. But it’s important to note that the index may not always follow the indicators.
On the upside, Nifty Bank may face immediate resistance at 40000. But if the Banknifty spot breaks above 40000 on a closing basis, the next resistance area will be at 40650-40800. This range will be a perfect selling zone for the days to come in March expiry 2023 unless it breaks and closes above 41000.
On the downside, immediate support for this week will be at 39600. Below this, the important area to watch out for is 39350 as per the chart. If the Banknifty spot breaks this level, the very important area to monitor will be between 39000 and 38900. Below 38900, the most important and strong support for this week will be 38613.15. This was the previous week’s low for Nifty Bank.
Overall, the key levels and resistance areas mentioned above are important for all traders to keep in mind while trading Nifty Bank. For this week, it’s crucial to maintain an upward momentum above the key level of 39600, while being cautious of potential pullbacks and resistance areas on the upside. Similarly, keeping an eye on the support levels on the downside is equally important for the rest of the week.
Banknifty Open Interest 23/03/2023
Banknifty’s OI (Open Interest) data indicates a positive outlook for this week. The highest OIs are seen on the call and put sides at 40500 CE(Call) and 39500 PE(Put), respectively. On today’s strong movement of Banknifty, we saw a huge OI build-up in both calls and puts. This data suggests that traders have made significant long positions by aggressively buying calls and selling puts above 39500.
Therefore, as per the OI data, 39500 will be a crucial support area for the bulls of Banknifty. The data also suggests a positive sentiment towards Banknifty, as traders are showing confidence in the upside potential of the index. It will be interesting to see whether the OI data will help Banknifty reclaim the level above 40000 this week or not.
Global Cues for this Week
FOMC Meeting Minutes
For now, the FOMC meeting on March 22nd is a big deal for investors and traders across the globe. They want to know if interest rates will change and how the Fed plans to manage the economy. Originally, people thought there would be a big rate hike, but recent banking troubles have lowered expectations.
In light of the global banking system’s instability, experts predict a softer policy statement to restore liquidity and stability. Some experts think there may not even be a hike. Powell will likely try to address the U.S. banking problems and reassure investors that the financial system is healthy and sound.
Conclusion
Based on strong global market trends, Nifty Bank experienced significant gains on March 21, 2023. The Nifty Bank index opened strong and broke through a key resistance area. So, this could lead to further momentum towards key resistance areas throughout the week. However, traders and investors should also be cautious of potential pullbacks this week.
The Banknifty’s Open Interest (OI) data shows a strong positive sentiment toward the Nifty Bank going above 40,000. The FOMC meeting on March 22nd could affect global markets. If the outcome is positive and there’s no indication of rate hikes, it could bring back risk-on sentiment to financial markets, including India.
