“Nifty Bank is also stretching higher and we expect the up move to continue till 49000 – 49150 from a short-term perspective. On the downside 47650 is the crucial support from a short-term perspective,” Jatin Gedia of Sharekhan said.
Analysts say that any retracements towards the 47,500 support level can be seen as a buying opportunity. The upside potential for the index is projected to reach 50,000, indicating continued optimism among market participants, said Kunal Shah of LKP Securities.
Within the banking index, Bandhan Bank and SBI ended 4% higher while Federal Bank, Bank of Baroda and IDFC First Bank went up 2-3% each. Heavyweight HDFC Bank ended 0.36% higher while ICICI Bank was flat.
Analysts are betting on largecap bank stocks, many of which have been underperforming.
“I would stick with the largecap banks. ICICI and Kotak are looking very good on the largecap stocks and in the midcaps, AU Bank is making a fresh move. AU Bank has arguably become one of the fastest growing small scale MFSI, which has got the license and now growing very rapidly. Their cost of money has fallen. And now with bond yields moderating, I think their MSME book will expand very fast,” said Sanjiv Bhasin of IIFL Securities.
So far in the calendar year 2023, Kotak Mahindra Bank is up only about 1.33%, HDFC Bank 1.67% while ICICI Bank has jumped 14.85%.
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