Nifty Bank pares gains after hitting record highs; use dips to buy: Experts

The Nifty Bank hit a fresh record high of 49,974 on Tuesday but pared gains in the last 1 hour of trade. The index fell 27 points to close at 49,396. The Nifty50 also hit a fresh record high in intraday trade but closed marginally in the red. IndusInd Bank, Bandhan Bank, PNB, and Bank of Baroda were among the top gainers while selling was seen in SBI, HDFC Bank, ICICI Bank, and Kotak Bank. The banking index witnessed some profit booking towards the close of the trade after hitting fresh record highs. Traders can use dips to buy as the momentum remains strong, suggested experts. "The Bank Nifty witnessed a volatile trading session during the expiry day, with bulls dominating the first half and bears taking control in the second half,” said Kunal Shah, senior technical & derivative analyst at LKP Securities.“Although the index fell short of reaching the 50,000 mark, the overall sentiment remains bullish. Dips in the index should be seen as buying opportunities, especially with strong support noted around the 49,000 mark, where the highest open interest lies on the put side,” he said.The Nifty Bank opened higher and built on gains to hit a fresh record high of 49,974. It pared gains to close marginally in the red. However, the trend still remains to be on the upside.However, markets could turn volatile ahead of the FOMC (Federal Open Market Committee) interest rate decision, which is due on Wednesday, May 1. Indian market will remain shut on Wednesday on account of Maharashtra Day . “In the last hour of the trade, traders opted for profit booking and we saw the market erasing all its gains during the closing stage. Nifty Bank also made a ‘shooting star’ candlestick pattern on the daily chart,”said Bhavik Patel, senior research analyst at Tradebulls Securities. “A trend reversal is possible if the market closes below 48,800 where the 5-day moving average is. Shedding of CE OI at 49,000 strike prices in the last hour indicates support for the market in that zone,” he said. “Increase in PE OI has been witnessed in the strike price between 49,600 and 50,000, suggesting sellers will try to defend the market in that zone,” highlighted Patel. “The level of 49,000 seems to be the closest support according to open interest while resistance seems to be 50,000. We advise traders to hedge their positions due to impending major events like tomorrow’s US FOMC meeting,” he recommended. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

NEW DELHI: The Nifty Bank index closed on a negative note on Tuesday. Shares of Bank of Baroda(up 3.27 per cent), Punjab National Bank(up 2.77 per cent), Bandhan Bank Ltd.(up 2.4 per cent), IndusInd Bank Ltd.(up 1.92 per cent) and Federal Bank Ltd.(up 1.34 per cent) ended the day as top gainers in the pack. On the other hand, Kotak Mahindra Bank Ltd.(down 1.01 per cent), ICICI Bank Ltd.(down 0.85 per cent), Au Small Finance Bank Ltd.(down 0.69 per cent), HDFC Bank Ltd.(down 0.62 per cent) and State Bank of India(down 0.04 per cent) finished as the top losers of the day. The Nifty Bank index closed 0.06 per cent down at 49396.75. Benchmark NSE Nifty50 index ended down 38.56 points at 22604.85, while the BSE Sensex stood down 188.5 points at 74482.78. Among the 50 stocks in the Nifty index, 24 ended in the green, while 26 closed in the red. Shares of Vodafone Idea, YES Bank, NHPC, PNB and IDFC First Bank were among the most traded shares on the NSE. Shares of JNK India, Jana Small Finance B, Likhitha Infra, Pudumjee Paper Prod and ABB Power hit their fresh 52-week highs in today's trade, while Osia Hyper Retail, Sheela Foam, Popular Vehicles, Gloster and GIR Natureview hit their fresh 52-week lows.

(RTTNews) - Indian shares gave up early gains to end modestly lower on Tuesday as caution prevailed ahead of the Federal Reserve's monetary policy announcement on Wednesday. No change in interest rates is expected, but the accompanying policy statement and remarks by Fed Chair Jerome Powell may offer some clues on what the U.S. central bank might cut interest rates in the coming months. The benchmark S&P BSE Sensex ended the session down 188.50 points, or 0.25 percent, at 74,482.78 ahead of a holiday for markets on Wednesday due to Maharashtra Day. Weekly expiry of the Bank Nifty F&O contracts also dampened sentiment, with the broader NSE Nifty index settling down 38.55 points, or 0.17 percent, at 22,604.85. Pharma, metal and tech stocks led losses, with HCL Technologies, Sun Pharma, Dr Reddy's Laboratories, Tata Steel and Tech Mahindra falling 1-2 percent. Among the top gainers, Mahindra & Mahindra soared 4.8 percent after launching the 3X0 in India. Bajaj Auto, Hero Moto Corp, Shriram Finance and Power Grid Corp rallied 2-3 percent.