On the technical front, the outperformance continued on the first day of the September series as well. The Bank Nifty outperformed the benchmark indices in the August series and rallied by more than 9 percent.
The Nifty Bank rallied for the sixth session in a row on August 28, supported by gains in IndusInd Bank, SBI, Federal Bank, ICICI Bank and SBI.
The Nifty Bank rose 923 points to 24,523. It outperformed Nifty50 by a wide margin, as the index rose 88 points or 0.7 percent to 11,647.
"Despite profit-booking witnessed in several stocks, the key indices held up admirably above the mark buoyed by expectations from the twin verdicts next week, which would have an impact on banking stocks,” S Ranganathan, Head of Research at LKP Securities told Moneycontrol.
“The rally across financials was pretty broad-based with several banks notching up double-digit percentage gains," he said.
On the technical front, the outperformance continued on the first day of the September series as well.
The Bank Nifty outperformed the benchmark indices in the August series and rallied by over 9 percent.
“We witnessed a blend of short-covering and fresh buying in the banking index during the August series. The index witnessed a rollover of 77.91 percent, which is slightly lower than its three-month average of 79.01 percent,” Jay Purohit, Technical and Derivatives Analyst, Motilal Oswal, told Moneycontrol.
Open interest decreased marginally by 2.68 percent on series-on-series basis. “Currently, the Bank Nifty is light on positions with marginal longs,” he said.
Purohit said 22,400 is immediate support for the index and below it, a strong base is at 21,000.
In terms of stocks, IndusInd Bank rallied for the second consecutive day, up nearly 10 percent after UBS upgraded the stocks to 'buy' from 'sell'. UBS has a target price of Rs 675.
Rally in shares of State Bank of India continued after top global brokerage firms reaffirmed their faith in India’s largest public-sector lender. UBS upgraded SBI to ‘buy’ with a target price of Rs 260.
Sentiments was also upbeat on reports that the Banks Board Bureau (BBB) is scheduled to hold interviews for the positions SBI chairman on August 28, sources said. BBB is the headhunter for state-owned banks and financial institutions.
Shares of ICICI Bank jumped over 4 percent after the private lender said it sold 6,442,000 shares, or 2 percent stake, of ICICI Securities for Rs 310 crore via open market transaction.Disclaimer: The views and investment tips expressed by 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.