Bank Nifty index hit a record high on Wednesday along with the frontline indices, Sensex and Nifty 50, as the Indian stock market continued its bull rally for the fourth straight session.
Sensex surged 550 points, or 0.71%, to hit a record high of 77,851.63, while the Nifty 50 rallied 106 points to touch its lifetime high of 23,664.00. Bank Nifty outperformed the benchmarks as it jumped 1,516 points, or 3%, to scale its fresh record high of 51,957.00, surpassing previous high of 51,133.20.
Banking heavyweights Axis Bank, HDFC Bank, ICICI Bank, IndusInd Bank and Kotak Mahindra Bank led the gains among the Bank Nifty constituents as these stocks rallied up to 2-3%. Barring Bank of Baroda, all other banking stocks in the index were trading in the green.
Bank Nifty has gradually picked up strength and as a decisive breach above 51,000 is confirmed, analysts believe this shall further strengthen the bias for next targets of 52,400 and 53,500 levels in the coming days with support maintained near 49,600 zone.
Meanwhile, Bankex after the consolidation witnessed has indicated a positive candle formation to close above the resistance zone of 57,100 levels to improve the bias and further rise is anticipated in the coming sessions, said Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher Pvt. Ltd.
According to Parekh, Bank Nifty would have the daily range of 50,000 - 51,000 levels with Bankex support at 56,600 and resistance at 57,800 levels.
Support for Bank Nifty is placed at 50,040 and 49,639 levels, while resistance is seen at 50,702 and 50,963 levels.
“For today’s expiry, Bank Nifty is expected to potentially move towards the 50,800 - 51,000 range. The 50,500 Call strike has the highest open interest (OI) of about 29 lakh shares, whereas the 50,000 Put strike has the highest OI on the Put side, with roughly 38 lakh shares,” noted Shrey Jain, Founder and CEO, SAS Online.
He believes overall market sentiment is optimistic, making a “buy on every dip” strategy a viable approach.
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 making any investment decisions.
