Nifty Bank at 5-month high; may lead next leg of the market rally
Published On: Tuesday, August 31, 2021 | By: Team KnowMyStock
In the past few months, the Nifty Bank Index has consistently struggled to rise above the 36,000 marks. A move above the 36,497 levels, which is the five-month high for the index, can take it up further. The daily and weekly charts suggest that a breakout above the above-mentioned level can see the index hit the 37,000 marks and then record a new all-time high by crossing 37,708 levels. As long as the support of 35,750 is defended on a closing basis, the upside sentiment is likely to see more interest of market participants in bank stocks. One can easily expect a 10 -15 percent jump in the index within a short time. A quick analysis of the constituents of the index suggests that there is more headroom among most stocks. Among the lot, Punjab National Bank (PNB), Federal Bank, and IDFC First Bank can move up over 20 percent each from the current levels, the charts suggest.
ICII Bank, Bandhan Bank, State Bank of India, HDFC Bank, and Axis Bank are likely to move up between 10 percent - 15 percent going ahead, provided the overall market momentum stays strong. There is a strong chance that the next leg of the market rally could even be led by banking stocks.
NIFTYBANK
Likely target: 37,000 and above 37,708
Upside potential: 1.30% to 3.30%
Tags: Nifty Bank Index market rally
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