According to Chandan Taparia of Motilal Oswal Financial Services, both Nifty and Bank Nifty are expected to trade with a weak bias as long as they remain below specific resistance levels. As reported by Business Standard, Taparia identifies these key resistance zones that will determine the market's direction in the near term. The latest technical analysis reveals that Nifty has decisively fallen below 23,750 and Bank Nifty corrected sharply by 752 points (1.30%) to 57,184, though both indices managed to defend key support levels during recent trading sessions. However, recent developments show Bank Nifty is consolidating just below a key resistance zone with the opening 15-30 minutes likely to decide the day's direction, as per TradingView analysis.
As reported by Business Standard, Bank Nifty is expected to trade with a weak bias as long as it remains below 57,250. The latest technical analysis shows that Bank Nifty corrected sharply by 752 points (1.30%) to 57,184, but managed to defend the previous week's low of 57,076 on an intraday basis, which is a positive sign. According to LKP Securities, immediate support is placed at 56,800, while resistance is seen around the 57,500 level. The index continues to trade well above all key moving averages, which are trending upward, with the 20-day EMA on the verge of breaking above the 200-day EMA. However, momentum indicators signal consolidation in the near term, with the RSI falling to 60.97 and the green MACD histogram bars faded further for a third consecutive session. Recent TradingView analysis suggests bullish bias above 57,850 with targets of 58,000 → 58,120 → 58,250 and watch levels at 57,620–57,650 demand zone.
The banking sector witnessed a strong rally with Nifty Bank gaining 1.6% to an intraday high of 58,128.65 level as market sentiment turned positive. All 14 constituents on the Nifty Bank were trading in the green, with AU Small Finance Bank taking the lead, rising 3.04%. Other top contributors included ICICI Bank (2.69%), HDFC Bank (1.9%), IndusInd Bank (1.73%), Yes Bank (1.63%), and State Bank of India (1.59%). The Nifty Private Bank index jumped 2% to hit an intraday high of 28,256.65, with all constituents trading in positive territory. The Nifty PSU Bank index gained 1%, rising to an intraday high of 8,671.75, as all stocks in the index traded in the green. This rally was supported by the Reserve Bank of India injecting ₹1,41,171 crore in transient liquidity through a seven-day variable rate repo (VRR) auction at a cut-off and weighted average rate of 5.26%.
The Reserve Bank of India injected ₹1,41,171 crore in transient liquidity into the banking system on June 23 through a seven-day variable rate repo (VRR) auction, addressing a liquidity deficit of ₹19,971.89 crore as of June 22. This follows the central bank's decision to infuse ₹2.43 lakh crore through variable rate repo auctions over recent days to ease liquidity pressures. Additionally, RBI introduced a US dollar-rupee forex swap facility for fresh FCNR(B) deposits for a minimum tenor of three years and maximum of five years to attract foreign capital. The facility allows banks to sell US dollars in multiples of $1 million to RBI and buy back the same amount at the end of the swap period, with underlying deposits having a one-year lock-in period.
Foreign portfolio investors (FPIs) poured ₹35,000 crore into Indian bonds this month after the government exempted them from income tax on interest income and capital gains from bond investments. FPI holdings in FAR securities stood at ₹3.58 lakh crore on Tuesday, up from ₹3.23 lakh crore on June 3. The rally was also supported by falling crude oil prices in global markets and strength in the rupee against the US dollar. Earlier this month, the monetary policy committee kept the repo rate unchanged at 5.25% with a neutral stance, providing stability to the banking sector. Market experts attributed the liquidity tightening to outflows from GST payments, prompting the RBI's intervention to maintain overnight money market rates.
