Bank shares extend rise to 3rd straight day, recover nearly 1% intraday; IDFC First, Canara Bank lead gains

Bank shares extend rise to 3rd straight day on December 15.

Bank shares extended their gains for a third straight session on Monday, staging a sharp recovery from the day’s low levels and lifting the banking index into positive territory.

The Bank Nifty rebounded about 400 points from the intra-day low to trade in the green. Ten of the 12 index constituents were trading higher, while Axis Bank and HDFC Bank were the only stocks in the red.

With the latest move, the Bank Nifty has risen for three consecutive sessions and is up over 1 percent during this period.

IDFC First Bank led the rally, climbing around 2 percent. Federal Bank followed with gains of about 1.4 percent, while Canara Bank rose nearly 1.1 percent.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, noted "Bank Nifty shrugged off early weakness and staged a steady recovery to close at 59,462, up 0.12%. The index continues to find strong support near the 20-day EMA, which has been acting as a dynamic support over the past few sessions, suggesting resilience and stability in the banking space."

"Looking at key levels, the zone of 59,500–59,600 is likely to act as an immediate resistance zone for the Index. A sustained move above 59,600 could lead to Bank Nifty extending its pullback towards 59,900, followed by 60,200. On the downside, the zone of 59,100-59,000 is likely to act as a strong support for the index," he added.

Other stocks advancing on the index included AU Small Finance Bank, Punjab National Bank, IndusInd Bank and State Bank of India, which were up as much as 1 percent.

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