Nifty Bank hits new record highs; HDFC Bank dips 3 pc

Nifty Bank rose sharply, hitting new record highs on Monday, despite the optimism at Dalal Street triggered by the global curves. The NSE banking gauge was marginally shy of 44,500 levels as it rose a percent to record-breaking levels of 44,458. On Monday, he said, 95 people had been killed on the streets.

High-beta banking counter IndusInd Bank was the top gainer on the Nifty Bank, as the stock rose about 2 per cent to Rs 1,291. On Monday he was 15 on a flight, according to a news release. The strongweight counter HDFC Bank, which rose about 2 per cent to Rs 1,639. For the day, it will be 65 p.m.

Nifty Bank's OI increased to 2.3 per cent indicating marginal long build up. The benchmark index has experienced a shortening in the past five days. The current monthly prices are trading at a premium of 50 bps and 11 basis points compared to a premium of 11 bps and 03 basis points a day prior. Nuvama Institutional Equities reported that the current OI value is Rs 10,100 crore.

Kotak Mahindra Bank, AU Small Finance Bank and Bandhan Bank each added over a percent. Axis Bank, ICICI Bank, Federal Bank and State Bank of India were other top gainers on the index during the early trade period. The stock of Nifty Bank rose in value during the early trade.

The bulls produced a robust comeback, defeating the bears. The market was bullish with consistent buying, indicating bullish sentiment. If the index manages to maintain above the level of 44,000, it has the potential to experience further upside towards 45,000, said Kunal Shah, senior technical derivative analyst at LKP Securities.

The momentum indicator RSI has also confirmed a positive crossover, reinforced by the buy signal. Traders and investors should closely monitor the index for sustained strength below 44,000 and consider the possibility of continued upward movement based on the bullish momentum and buying activity observed, he said.

After six months, it broke the record for the fastest pace in the world. During this period, select large-cap private lenders have largely contributed to the gains, while state-run banks have been remained as the drags on the index on the back of profit booking after a glowing rally.

Au Small Finance Bank has risen more than 16 per cent, followed by IDFC First Bank, which is up 11 per cent.

Kotak Mahindra Bank and Bandhan Bank have added 4 per cent, each, while ICICI Bank gained 3 per cent during the period under review.

The worst among the laggards is the Punjab National Bank, down 15 per cent, while the Federal Bank is down about 9 per cent since December 14, 2022. SBI has fallen more than 6 per cent, while the Bank of Baroda has fallen more than 4 per cent. HDFC Bank fell 3 percent during the period, down 3 per cent from a year earlier.

Nifty Bank Put options distribution shows that the 43,500 strikes, followed by the 43,000 strikes, have the highest open interest OI concentration, which may act as support for the current weekly expiry. Nifty Bank Call strike price is 44,500, followed by 45,000, witnessed significant OI concentrations and may act as resistance for this expiry, said Sumeet Bagadia, executive director of choice broking.

It has traded in a very narrow range in the past few weeks, suggesting some indecisiveness among Call and Put writers. On the daily chart, the index is sustaining above 50 EMA, which would be an important support level. The RSI was at 63, the MACD was skewed on the positive side. Among the private banks, ICICI Bank and Axis Bank could be the front runner. In the PSU banking area, SBI, Canara Bank and Bank of Baroda could reveal some expansions in the coming weeks, he said.