Banking stocks extended gains on Friday, driving the Bank Nifty index to the day’s high of 56,760.25, up 1 percent. The rally was powered by PSU banking stocks, with State Bank of India (SBI) and Punjab National Bank (PNB) rising over 2 percent each. The index was also supported by steady gains in private sector peer stocks such as Axis Bank and IndusInd Bank.
At 1:45 pm, the Bank Nifty traded at 56,760.25, well above its intraday low of 56,152.45. The broader Nifty 50 was up 0.6 percent at 25,330.75, while the Sensex climbed to 82,654.11. Over the past year, the Bank Nifty has climbed over 10 percent, far outperforming the 1.2 percent rise in Nifty 50.
SBI shares were up 2.17 percent at Rs 880.85, PNB rose 2.89 percent to Rs 117.60, Axis Bank gained 1.89 percent to Rs 1,189.50, IndusInd Bank added 2.22 percent to Rs 765.80, and Canara Bank advanced 1.61 percent to Rs 128.20.
Analysts see improving sentiment in the banking sector after a phase of consolidation. “The Bank Nifty has mirrored the positive bias, with support seen in the 55,900-55,800 band and resistance near 56,500-56,600. A clear breakout above that zone may be needed to resurrect a sustained uptrend,” said Amruta Shinde, Technical & Derivative Analyst at Choice Broking.
Vaishali Parekh, Vice President - Technical Research at PL Capital, noted that the index “has indicated a decent recovery” after holding above its 100-period SMA near 55,700. “Once a decisive move above 56,500 is confirmed, we can anticipate a further upward move toward the 57,700 zone in the coming days,” she said.
Ponmudi R, CEO of Enrich Money, added that the index “breached its slope-line barrier near 56,350,” and a sustained close above this level would confirm continuation towards 57,000.
Investor sentiment remained upbeat amid easing geopolitical risks and stronger foreign inflows. “The overall market environment is turning positive. The Gaza peace accord signals an end to the conflict and reduction of geopolitical risk. Domestically, indications of a trade deal between the US and India, along with FII buying in the cash market for three consecutive sessions, bode well for the market,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
With PSU banks leading the rally -- the Nifty PSU Bank index up 1.98 percent and the Nifty Private Bank index higher by 1.09 percent -- traders are watching for a sustained close above 56,750 to confirm the next leg of the uptrend in banking stocks.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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