Banking Stocks See Sharp Recovery
Bank shares have seen a strong comeback for the third day in a row, with the Bank Nifty index rising by over 1% in this period. The index, which tracks the performance of major banking stocks, rebounded around 400 points from its lowest point of the day to end in positive territory.
Top Gainers
Out of the 12 stocks that make up the Bank Nifty, 10 were trading higher, with only Axis Bank and HDFC Bank seeing losses. The biggest gainers included:
- IDFC First Bank, which rose by around 2%
- Federal Bank, which saw gains of about 1.4%
- Canara Bank, which increased by nearly 1.1%
What's Behind the Rally?
According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the Bank Nifty has found strong support near the 20-day EMA, which has helped the index to recover from its early weaknesses. This suggests that the banking space is showing resilience and stability.
Looking Ahead
Shah believes that the Bank Nifty is likely to face immediate resistance in the range of 59,500-59,600. If the index can sustain its move above 59,600, it could lead to a further pullback towards 59,900 and then 60,200. On the other hand, the range of 59,100-59,000 is expected to act as a strong support for the index.
Other banking stocks that saw gains included AU Small Finance Bank, Punjab National Bank, IndusInd Bank, and State Bank of India, all of which rose by up to 1%.