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D-Street Buzz: Bank Nifty hits 8-month high; SBI top gainer, Kotak Bank, HDFC Bank hit new 52-week high

Bank Nifty hit 8-month high adding half a percent on November 11 led by State Bank of India and Kotak Mahindra Bank which gained over 2 percent each followed by Axis Bank, HDFC Bank, ICICI Bank and Punjab National Bank.

November 11, 2020 / 10:52 AM IST

The Indian stock market continues its bull run as Sensex is up 229.01 points or 0.53 percent at 43506.66, and the Nifty added 82.10 points or 0.65 percent at 12713.20.

Among the sectors, Bank Nifty hit 8-month high adding half a percent on November 11 led by State Bank of India and Kotak Mahindra Bank which gained over 2 percent each followed by Axis Bank, HDFC Bank, ICICI Bank and Punjab National Bank.

Share price of IndusInd Bank, IDFC First Bank and RBL Bank are trading in the red, down 1-2 percent each.

"The executive committee of the central board of directors of State Bank of India approved the divestment of 8,510 equity shares constituting 8.5% of the bank's stake in UTI Trustee Company Pvt Ltd," SBI said in a regulatory filing.

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Domestic brokerage firm HDFC Securities has a buy recommendation on State Bank of India with target of Rs 317 per share. SBI’s Q2 earnings were ahead of estimates, led by lower-than-expected provisions. The bank reported a sharp improvement in collection efficiency to 97 percent in Q2. These have been common themes across most of our coverage this quarter. While we have reduced our slippage and provisioning estimates, they remain conservative. Despite the recent AT-1 and Tier 2 capital raise, we believe it will be prudent for SBIN to raise equity capital, the research firm said.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in is of the view that technically weakness in IndusInd Bank should not materialise unless this counter closes below Rs 783 levels. However, as long as it sustains above Rs 800 levels then a higher target of Rs 950 shall remain intact. For the time being, traders will be better off booking profits in the next session. In case if it closes below 783 levels then it shall trigger a fresh downswing.

Pritesh Mehta, Lead Technical Analyst - Institutional Equities at YES Securities feels that within banking space, private bank index has witnessed consecutive fifth higher high & higher low, while PSU Bank index has gained positive traction and is expected to do well from near term perspective as the ratio of PSU Bank/Nifty has given consolidation breakout.

Nifty Financial Services gained over a percent led by Bajaj Finance and Bajaj Finserv which gained over 2 percent each followed by ICICI Prudential, SBI Life Insurance and HDFC Life Insurance.

Shitij Gandhi, Senior Technical Analyst at SMC Global Securities suggests buying SBI Life Insurance Company with target price at Rs 902. For the last three months, the stock has been consistently moving lower in a downward sloping channel with the formation of the lower high and lower bottom patterns. However, this week the stock has once again moved back above its short-term moving averages with a breakout above the falling trend line of the sloping channel, he said.

SBI was one of the most active stock on NSE in terms of volumes with 3,38,08,154 shares being traded. Top banking names which hit fresh 52-wek high included Kotak Mahindra Bank and HDFC Bank.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sandip Das
first published: Nov 11, 2020 10:52 am

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