Nifty Bank hits fresh lifetime high; PSU Bank index up 5% in 5 sessions - key factors behind rally
Nifty Bank today: The index opened at 44,078.60 and made an intra-day high at 44,127.10. Out of the 12-stock index, 8 advanced.
Nifty Bank today: Nifty Bank Index on Wednesday, December 14, hit a fresh all-time high of 44,000. Today is the fifth consecutive session when the index that tracks the banking sector comprising 12 banking stocks, has hit fresh highs.
The index opened at 44,078.60 and made an intra-day high at 44,127.10. Out of the 12-stock index, 8 advanced. In the past five days, the index has gained around 2 per cent and Year To Date (YTD) the index has climbed more than 21 per cent.
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According to analysts, Asian stocks followed Wall Street which finished higher overnight after US inflation cooled. According to the data released by the US Labour Department, the consumer price index (CPI) in November, a closely-watched measure of inflation, climbed 7.1 per cent from a year ago, down from 7.7 per cent in October. The annual CPI peaked at 9.1 per cent in June, which was the biggest increase since November 1981.
“Stocks in Asia followed equities on Wall Street higher after US inflation cooled ahead of the Federal Reserve’s policy (Fed) decision later today,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
Kunal Shah, Senior Technical Analyst, LKP Securities, said that the momentum indicators are in the strong buying zone which will help the Nifty Bank to move higher in short term.
“The Nifty Bank index continued to trend higher. The momentum indicators are in the strong buying zone which will help the index to move higher in the short term towards the 45,000 level. The lower-end support is visible at 43,400 and if breached will lead to a further correction toward the 43,000 level,” Shah said.
Within the bank index, the PSU bank segment is strongest and appears to be resilient. As per data, the Nifty PSU Bank index has trumped the market as it zoomed more than 5 per cent in the past session. On Wednesday, the index gained 57 points or 1.25 per cent at the time of writing this report.
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