Nifty Bank: Will the index top 55,000 by 2024 end? Technical experts share targets & trading strategies

Market Outlook: The Nifty Bank index has risen around 11 per cent in 2024 so far, underperforming the benchmark index, Nifty 50, which has gained over 13 per cent in this period.

Currently trading at 53,583.8, the Bank index is just a little over 1.5 per cent away from its record high of 54,467.35, hit in September 2024. Meanwhile, it has advanced around 21 per cent from its 52-week low of 44,429, recorded in January 2024.

Just in December so far, the index has added 3 per cent following a 1 per cent rise in November. Moreover, the year has been a volatile one for Bank Nifty, with the index delivering positive returns in seven months and negative in the remaining five.

As 2024 approaches its conclusion, market analysts and technical experts are closely evaluating the potential trajectory of the Nifty Bank index. Here’s a detailed analysis from leading experts on the expected technical target and strategy for Nifty Bank by the end of 2024.

Nifty Bank year-end targets

Shrikant Chouhan, Head of Equity Research at Kotak Securities, expects the index to trade between 50,000 and 57,000 by December 2024. This outlook reflects the possibility of both short-term corrections and sustained bullish momentum, contingent on the index’s ability to break through significant resistance levels.

Mandar Bhojane, equity research analyst at Choice Equity Broking, said the index faces resistance near the 54,000 level, and a decisive close above it could set the stage for a rally toward 55,000, while the current range of 50,000–54,000 suggests consolidation. 

He further added that the upward-trending weekly RSI of 59.22 signals strengthening momentum, with any pullbacks to 52,600–53,000 acting as a potential buying opportunity for traders.

Jigar S. Patel, Senior Manager of Technical Research at Anand Rathi Shares and Stock Brokers, also expects the Bank Nifty index to reach 55,000 by year-end. 

“A daily close above 53,800 could signify a breakout, paving the way for Nifty Bank to potentially reach 55,000 by year-end. The weekly stochastic oscillator’s rebound from the 35 zone adds to the bullish narrative, suggesting the index has room for upward movement without entering the overbought territory,” said Patel.

Volatility and Recovery in Nifty Bank’s Trajectory

Anupam Roongta, a market analyst at Share.Market, said after hitting a high of 54,465 on September 26, 2024, Nifty Bank corrected by 8.60%, finding support at 49,789 on November 21, 2024, highlighting the volatility in the index. However, the index has since recovered by 8.28%, trading near 53,208 as of now.

Roongta highlighted the importance of the 10-day moving average at 53,081 as a critical support zone. A successful bounce from this level would require Nifty Bank to challenge its all-time high resistance of 54,438 for further upside, he added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.