Bank Nifty outperforms benchmarks, closes above 54,500; check top gainers: What lies ahead?

Reports coming in for today mention that Bank Nifty outperformed key market indices and closed above the crucial 54,500-mark on September 30 with Union Bank of India, Kotak Mahindra Bank leading the upside.

Shares of HDFC Bank were down nearly 2%, weighing down the Nifty 50 index most.

On the other hand, upside in heavyweight peer ICICI Bank supported the Nifty 50 index and the stock was over 3% elevated. ICICI Bank was the top gainer on the index.

Market key market indices The two key benchmark indices ended softer on Wednesday, extending losses for the third straight day, as firm oil price marks, elevated global bond yields and foreign fund outflows made market participants jittery.

Giving up all intraday upside, the 30-share BSE Sensex declined 48.78 points, or 0.07 per cent, to settle at 72,480.29 on fag-end selling. Through the session, it jumped 533.16 points, or 0.73 per cent, to 73,062.23.

The 50-share NSE Nifty eased 95.75 points, or 0.42 per cent, to end at 22,620.45.

"Bank Nifty formed a bullish candle with a elevated high and a elevated low signaling pullback from extreme oversold territory. Index in the process snapped its two-session slide and closed elevated by 0.7%. Going ahead, a follow through pullback above Thursday’s high 55,135 will signal extension of the pullback towards 55,600 and 56,000 marks over the upcoming sessions being the recent breakdown area.

"Failure to move above Thursday’s high will signal some consolidation in the range of 53,500-55,100 marks over the upcoming sessions ahead of the RBI monetary policy outcome during the week ahead. Index has key short-term backing at 53,500-53,000 being the confluence of the previous major lows and measuring implication of the recent range breakdown (58,500-56,000)," stated Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

Bank Nifty closed at 54,633.05, up 373 points (+0.69%). The index opened below the previous day’s close at 54,175.90 with a negative open around 85 points. A major positive intraday surge in ICICI Bank, Kotak Mahindra Bank, Union Bank of India, Indus Ind Bank, and Axis Bank helped the index hold the opening marks and witness a firm intraday surge of around 900 points, making a high of 55,135.50 in the first half of the session. Intraday softness in HDFC Bank and State Bank of India created some selling pressure on the index. "That stated, the index managed to close above the previous day’s high with a solid 373-point gain on the daily chart, which clearly indicates resilience on the chart," stated Hitesh Tailor, Technical Research Market observer at Choice Broking Private Limited.

"Bank Nifty closed above the previous day’s high for the first time in the last five trading sessions with a firm green candle. Technically, this is a good indication, and the short-term trend has now changed to sideways bullish after this close. A major pullback from the softer marks can be anticipated in the upcoming days. Immediate backing is noted at 54,200–54,000, while major resistance is placed at 54,900–55,000," further noted Tailor.