Banking shares ended their three-session losing streak on Thursday as investors picked up stocks at lower levels.
The Nifty Bank index, which had dropped nearly 1.5 percent over the past three sessions, settled 0.4 percent higher.
Kotak Mahindra Bank led the gains, advancing more than 2 percent to Rs 2,173.30 on the NSE. HDFC Bank and Canara Bank followed, rising 1.02 percent and 0.85 percent, respectively. Punjab National Bank, State Bank of India and IndusInd Bank gained up to 0.5 percent.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, said the Bank Nifty has been moving around its 20-day EMA for the past three sessions.
"On Thursday, it underperformed frontline indices and formed a small body candle with shadows on either side. The zone of 58,900–58,800 will act as crucial support for the index, while 59,400–59,500 will be an important hurdle," he noted.
The rebound in banking stocks came amid gains in the broader market.
Benchmark indices Sensex and Nifty also recovered after a three-day decline, supported by buying in banking, auto and metal stocks and a rate cut by the US Federal Reserve.
The Sensex rose 426.86 points or 0.51 percent to settle at 84,818.13. It touched an intra-day high of 84,906.93 and a low of 84,150.19.
The Nifty advanced 140.55 points or 0.55 percent to finish at 25,898.55. After early volatility, the index moved higher through the session and ended near the day’s peak of 25,922.80.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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