Nifty Bank hits new high: Here are the top gainers & losers; stocks that can drive the rally further

Nifty Bank opened sharply higher, hitting new record highs on Monday, amid the optimism at Dalal Street triggered by the global cues. The Banking gauge of NSE was marginally shy of 44,500 levels as it rose more than a per cent to hit new record highs of 44,458.95 on Monday.

High-beta banking counter IndusInd Bank was the top gainer on the Nifty Bank as the stock surged about 2 per cent to Rs 1,291.15 on Monday. It was followed by heavyweight counter HDFC Bank which gained about 2 per cent to Rs 1,639.65 for the day

Nifty Bank saw an OI addition of 2.3 per cent indicating marginal long build up. In the last five days, the benchmark index has seen a short covering. The current month's futures are trading at a premium of 50 points and 11 basis points versus a premium of 11 points and 03 basis points a day prior. The current OI value is Rs 10,100 crore, said Nuvama Institutional Equities.

AU Small Finance Bank, Kotak Mahindra Bank and Bandhan Bank added over a per cent, each. Axis Bank, ICICI Bank, Federal Bank and State Bank of India were other top gainers on the index during the early trade. All the stocks of Nifty Bank were trading higher during the early trade.

Watch: Bank Nifty hits fresh record high, may rally further; ICICI Bank, Axis Bank, SBI may rise

The Bank Nifty witnessed a strong comeback by the bulls, overpowering the bears. There was consistent buying activity, indicating bullish sentiment in the market. If the index manages to sustain above the level of 44,000, it has the potential to experience further upside towards 45,000, said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

"The momentum indicator RSI has also confirmed a positive crossover, reinforcing the buy signal. Traders and investors should closely monitor the index for sustained strength above 44,000 and consider the potential for continued upward movement based on the bullish momentum and buying activity observed," he said.

NIfty Bank hit 44,151.80 levels on December 14, 2022. It raced past the level after more than 6 months. During this period, Select large-cap mid-sized private lenders have contributed the most to the gains, while state-run lenders have remained as the drags on the index on the back of profit booking after a stellar rally.

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Among the gainers, Au Small Finance Bank has jumped over 16 per cent, followed by IDFC First Bank, which is up by 11 per cent.

Kotak Mahindra Bank and Bandhan Bank have added 4 per cent, each, while ICICI Bank gained 3 per cent during the period under review.

Among the laggards, Punjab National Bank is down 15 per cent, while Federal Bank is down about 9 per cent since December 14, 2022. SBI has declined over 6 per cent, while Bank of Baroda is down more than 4 per cent. HDFC Bank tumbled 3 per cent during the given period.

Nifty Bank Put options distribution shows that the 43,500 strikes, followed by the 43,000 strikes, have the highest open interest (OI) concentration, which may act as support for the current weekly expiry. Nifty Bank Call strike price of 44,500, followed by 45,000, witnessed significant OI concentrations and may act as resistance for this expiry, said Sumeet Bagadia, Executive Director at Choice Broking.

"It has traded in a very narrow range in the past week, suggesting some indecisiveness among Call and Put writers. On the daily chart, the index is sustaining above 50-EMA, which would be acting as an important support level. The RSI stood at the 63 level while the MACD was skewed on the positive side. Among private banks, ICICI Bank and Axis Bank could be front runner. In the PSU banking space, SBI, Canara Bank and Bank of Baroda may reveal some expansions in the coming week," he added.


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