Bank Nifty is indecisive and rangebound: US debt, RBI key to watch 

Despite numerous tries throughout the past month, Bank Nifty has not yet crossed its all-time high of 44,151.80. As the monthly derivatives expiry nears, it has been range-bound and aimless for the past several sessions, which has worried investors. While the Bank Nifty’s growth has been restrained by the failure of large US and European banks, analysts predict that the US debt ceiling negotiations will have significant effects on international markets and that failing to find a consensus will have disastrous effects on the world economy.

“Markets are still being impacted by the US debt ceiling standoff. The most likely possibility is for the problem to be resolved at the eleventh hour since failure to do so will have disastrous effects on the world economy and markets. But until then, markets will be on edge. The most likely scenario following the settlement of the standoff is a worldwide risk-on and rally, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He claims that the market will benefit greatly from lowering inflation and a potential RBI rate drop by the end of 2023.

Bank Nifty’s heavyweight components, including ICICI Bank, Axis Bank, and IndusInd Bank, are getting close to new breakthrough levels while remaining stable. HDFC Bank, on the other hand, is firmly maintaining its current level. This suggests that the index is preparing for a new breakout, and if it closes above 44200 levels, it may quickly advance above 45000.

The most important zones to surpass will be 44152 and 44200 based on technical and options data. According to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, if it rises over that level, it will surge towards 44500 and, in the best case scenario, 45000. He thinks that because the index is getting close to its monthly expiration, it must cross the aforementioned thresholds or it will continue to be slow and range-bound. There are supports at 43700 and 43300. According to the performance of the Bank Nifty’s component companies, it should cross the level of 44150/44200 soon, he continued.

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