It was yet another fantastic day for the banking pack on Dalal Street, as the Nifty Bank index surpassed the 43000-point mark for the first time ever on Thursday and notched more than 4% gains in the November derivative series.
This is the second straight series of gains for the sectoral index, cumulatively rising 14% in this period.
On Thursday, Nifty Bank ended 0.8% higher at 43075.40 points, the highest-ever close for the index.
The gains came on the back of a dovish view offered by the US Fed officials in the minutes of their November meeting on future rate hikes. This boosted risk appetite and pulled down bond yields, which further lifted the rate-sensitive sector.
Private banks largely led the gains in the sectoral index, as some public sector banks succumbed to profit booking.
However, the bullish view on the overall banking pack remains intact for analysts on the Street.
Analysts believe there is more steam left for this sector and expect the Nifty Bank index to test 44000-46000 levels in the near term.
“Bank Nifty has a projected target of around 45500-46000 levels in the near future,” said Vaishali Parekh, vice president – of technical research at Prabhudas Lilladher.
According to Parekh, private banks have shown a clear improvement in the bias, where stocks like , , , , and can carry on the momentum and see further upward movement in the coming days.
As for PSU banks, the bullish view remains intact as the Nifty PSU Bank index has also given a fresh breakout above 3800 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)