Bank Nifty surges nearly 1 per cent; still indecisive

Bank Nifty index surged nearly 0.9 per cent, outpacing the benchmark indices, though marginally. The lethargic movement of heavyweights irrespective of 8 per cent plus growth in Bank of Baroda, refrained Bank Nifty from gaining further grounds. Two amongst the top four viz; ICICI Bank and SBIN, closed with marginal losses, while HDFC Bank and Kotak Bank gained 1 per cent plus.

Bank Nifty index had given a multiple resistance breakout near 25,930 levels on January 15. The stock had surged nearly 6.6 per cent up to its all-time high at 27,652 levels ahead of revival in Q3 performance.

Along with the domestic and global market turmoil, the index too faced a sharp fall of 9.5 per cent up to February 6. The stock took a very significant support at 25024, which is a support level of the upward sloping trendline.

However, recently the index has witnessed a prolonged breather above its support level with no immediate sign of fresh buying. Relatively lower volumes and 14-period RSI lying at 41 suggest lack of momentum for now.

Currently, stock is trailing above its 100 days EMA support of 25473 levels. 25930-26125 is the crucial zone, which would decide the further direction of Bank Nifty. The level of 25370 followed by 25150-25025 will act as major supports for the index. While 26340 level followed by 26650 will act as major resistance in case the index breaches 26000.