Nifty Bank soars 1,200 points; Axis Bank, HDFC, SBI lead gains — what’s next?

The Nifty Bank, an index of India’s top banking stocks, has recovered over 1,200 points off day’s low to trade in the green. The Nifty Bank made an intraday high of 52,121 on Tuesday, November 5.

Since the record high of 54,467.35, the index has corrected over 3,500 points or nearly 6%.

Among the 12 constituents of the Nifty Bank, Axis Bank was the top gainer, trading with a 3% gain, followed by HDFC Bank at 2.5%.

Other notable gainers included IndusInd Bank, Bank of Baroda, SBI, Punjab National Bank, ICICI Bank, and Kotak Mahindra Other notable gainers included IndusInd Bank, Bank of Baroda, SBI, Punjab National Bank, ICICI Bank, and Kotak Mahindra Bank, each trading within a range of 1-2%.

Sacchitanand Uttekar of Tradebulls noted that the Nifty Bank index has been consolidating for the past two weeks, with a critical resistance level at 51,645. “Until we see a closing above this level, a decisive trend change is unlikely,” he stated.

“On the contrary, the daily ADX has started trending toward the 25 mark. If we see a breakout there, Nifty Bank itself may drive a further downtrend. The next likely support level for the index is around 50,400-50,350,” he added.

Uttekar believes that the “sell on rise” trend may continue across both indices.