Nifty Bank Tops 52,000 Barrier, Marks 1,000-Point Rally In 15 Sessions
The churn in the market in favour of fairly valued large caps, particularly in banking, is likely to continue, says VK Vijayakumar of Geojit Financial Services.
Nifty Bank Index scaled past the 52,000 mark to a fresh high as Axis Bank Ltd. and HDFC Bank Ltd. led gains in the equity market on Tuesday.
The banking benchmark gauge topped the key psychological barrier in just 15 sessions, having crossed the 51,000 mark on June 3. During this journey, the Federal Bank Ltd. and HDFC Bank led the gains for the key index to jump 1,000 points.
The Nifty Bank, rising for the second consecutive day, was trading 0.61% higher at 52,020.06 as of 9:58 a.m., as compared to a 0.23% advance in the benchmark Nifty 50.
The churn in the market in favour of fairly valued large caps, particularly in banking, is likely to continue, according to VK Vijayakumar, chief investment strategist at Geojit Financial Services. "From a valuation perspective, PSU banks look attractive."
The support for the bank index is placed around 51,150 followed by 50,500, according to Ruchit Jain, lead research analyst at 5paisa.com.
If the hurdle of 51,950 is crossed, the index could rally towards 52,500 followed by a positional target around 54200, he had said earlier. "Hence, it is advisable to trade with a positive bias and look for signs from the private sector banks, which could take the leadership to take the index higher."
Meanwhile, the Nifty continued its positive run for the second consecutive day, as the index rose as much as 0.34%. As of 09:17 a.m., the NSE Nifty 50 was 51 points or 0.22% higher at 23,588, and the S&P BSE Sensex was 227 points or 0.29% higher at 77,568.
