All eyes on Mount 50,000 as Nifty Bank gears up for a new high, here's a summary of its key milestones
The Nifty Bank index comprising the most liquid and big banking stocks commanded a base value of 1000 as on January 1, 2000 referred to as its base year. Nevertheless, the index was launched on September 15, 2003.
So, as the Nifty Bank index lately on April 30, 2024 (Tuesday) marked a new high of 49,974.75 levels and is within a touching distance of hitting 50,000 levels, here we will take you through the index’s journey from 1,000 to nearly 50,000 odd levels.
Nifty Bank hitting its first 10,000 points
On December 11, 2007, Bank Nifty hit a new milestone of 10,000 levels in close to 8 years. The level was hit even as the Indian markets witnessed a series of rout amid the global financial crisis.
20,000 levels marked on the index at the start of 2015
Nifty Bank hit the 20,000 level at the start of 2015 on January 23, 2015, a year that turned out to be turbulent for D-Street given the sub-normal monsoons, disappointing corporate results, plunge in oil and commodity prices and surprise policy rate cut. It took 7 years, 1 month and 12 days time or 2600 days in total to reach this level from 20,000 levels.
30,000 levels logged relatively earlier
From 20,000 level marked on Bank Nifty in 2015, the index took another 4 years, 1 month and 27 days time to notch 30,000 mark. This level was attained on March 22, 2019.
40,000 levels hit still earlier
After the Covid-led drawdown, the Nifty Bank index saw massive recovery and climbed to a new high of 40,000 levels on October 19, 2021 in just 942 days or over 2.5 years time.
50,000 levels at a close distance from current levels
For the Bank Nifty index to log 50,000 levels will be another key milestone and after closing just shy of 50,000 levels in the previous trading session, the index saw correction to levels of 49,231.05 today, a drag of 0.34 per cent.
Why has Nifty Bank seen exorbitant gains lately?
A couple of factors including favourable macros, improving asset quality and strong credit offtake is boosting investor confidence. Also, the government's focus on privatisation and disinvestment in public sector banks has fueled optimism among investors. Furthermore, the accommodative monetary policy stance and low-interest rates have supported the banking sector's profitability, noted Atul Parakh, CEO of Bigul.
Technicals suggest resistance looms near 50,000 levels
Jigar S. Patel, Sr. Manager - Equity Research, AnandRathi held that after notching its all-time high of 49,974, the Nifty Bank index faltered just shy of the significant psychological barrier of 50000. This failure to sustain above the 50000 level triggered a corrective move, with the index retracing to approximately 49300. Looking ahead, the expert anticipates strong support to emerge around the 43000 levels, indicating a considerable downside protection. Conversely, a formidable resistance zone looms near the 50000 mark, suggesting that further upward movement might encounter significant hurdles.
On the downside, if the Bank Nifty index closes below 49000, it could pave the way for a test of the 48500 level in the upcoming week, he added.