Market's Upward Trajectory
Rajesh Palviya, SVP–Research at Axis Securities, provided insights into the day's trading, highlighting the bullish structure of the Bank Nifty. He noted
that the daily Relative Strength Index (RSI) turned positive and remained above its reference line, which suggested a persistent upward bias. Palviya identified 58,318 as the pivotal level for the day. If the index surpassed this level, it could potentially climb towards 58,464–58,654–58,800. However, a drop below 58,318 could trigger profit booking, leading to a decline towards 58,128–57,982–57,793. The broader market sentiment was also optimistic. The BSE Sensex experienced an increase of 248.6 points, or 0.3%, reaching 84,715.1. Similarly, the Nifty 50 added 74 points, closing at 25,949.8. Market breadth reflected a positive trend, with 2,070 stocks advancing against 1,458 declining. The Bank Nifty hit a fresh record high on Thursday, climbing to 58,609.2 in early trade, up 0.57% from the previous close, driven by strong buying in leading private banks. Around 11:00 am, the index was trading slightly off its peak at 58,594.4, higher by 0.55%. Analysts at Prabhudas Lilladher observed that a decisive breakout above 58,500 would likely initiate a fresh leg of upside in the coming sessions. They highlighted immediate support near the 50-day exponential moving average at 56,800, expecting the index to trade within a broad range of 57,800–58,800 in the near term.
Key Stock Performers
Several stocks demonstrated significant gains, contributing to the Bank Nifty's upward movement. IndusInd Bank led the gains, surging 2.98% to Rs 890.15. Following closely, ICICI Bank advanced 2% to Rs 1,386.1. Axis Bank also showed positive performance, adding 0.73% to reach Rs 1,230.5, while State Bank of India rose 0.55% to Rs 962.4. Other constituents, including Canara Bank and Punjab National Bank, also posted modest gains. These individual performances collectively fueled the overall positive trend of the Bank Nifty index. The rise in these banking stocks reflected a positive market sentiment and investor confidence in the sector. The substantial gains in IndusInd Bank and ICICI Bank, specifically, were key drivers behind the Bank Nifty's record high. The ongoing positive performance of these major banking stocks remains crucial for sustaining the bullish momentum in the market.
