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Bank Nifty: Rally may continue in June, Bank Nifty to attempt 22,000-22,500

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India’s equity benchmarks could further extend their gains after rising 11.4 per cent in the past six trading sessions. On Wednesday, the Nifty reclaimed the psychologically crucial 10,000-mark for the first time since March 13. Most technical and derivatives analysts expect the index to touch 10,500 in June. The index ended up 82.45 points, or 0.8 per cent, at 10,061.55 on Wednesday. Analysts expect the Bank Nifty to continue rising and touch 22,000-22,500 levels. Action is likely to shift to the beaten-down midcap stocks from frontline counters which have been leading the rally so far. Sanam Mirchandani spoke to four analysts to understand their market outlook:

Amit Gupta
Head of derivatives, ICICIdirect


We believe the Nifty will hit 10,300 in June and the support is expected around 9,500. The 9,500 call option has seen closure of positions and positions are being built in 10,300 and 10,500. This rally will be led by banking, metals and consumption stocks. We expect the Bank Nifty to touch 22,500. People should build stock-specific portfolio particularly in beaten-down stocks. The market breadth has become broad. We are seeing

short covering in beaten-downstocks. That is why we are seeing bounce back in metals, PSU banks and consumption stocks. This trend may continue for 1-2 months.

Ashu Bagri
AVP-technical research, SBICAP Securities


Since Nifty futures closed at around 10,085, we see the index futures going more upwards in time to come. We see Nifty futures rising to 10,700 over the next few weeks. We like realty, metal and PSU banks. Investment buying should happen below 8,100 levels only.

Rohit Srivastava
Founder, Indiacharts.com


We may see the 10,550-mark soon which is a 61 per cent retracement of entire fall we have seen from January. Gains will sustain given the macro outlook on the dollar — which has started to weaken and is reducing pressure on emerging markets. The Bank Nifty has fallen more than the Nifty and it will continue to play catch-up. The bank index should hit the 22,000-mark. Metals and commodity-related sectors should do well on the back of a weaker dollar. Investors should keep adding to positions on a long-term basis. I don’t expect any major fall till 10,550 is hit.

Swapneel Mantri
Senior technical analyst, Sushil Finance


One can expect choppiness in the market with support at around 9,920-9,890 levels. On the upside, is 10,150-10,200 target zone. Overall, one can expect the Nifty to trade in a broader range of 9,800-10,440. Expect action to shift to broader market with stock-specific action amongst the beaten-down midcap counters. Asian Paints, Berger Paints and Pidilite are showing good uptrend and are good accumulation candidates.

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