By Mavika Gurung
Investing.com -- The domestic market indices snapped a five-week losing run and ended higher last week amid strong macroeconomic data like quarterly GDP and manufacturing PMI indicating a resilient Indian economy.
Key sectoral index Nifty Bank jumped 1.32% on Friday and closed 1.02% higher, soaring 446.95 points to 44,436.1 levels in the session, with all constituent stocks except two ending in the green.
In line with the overall domestic market vigour, the Nifty Bank index gained 0.46% in the September 1-ended week, while benchmark indices Nifty50 and Sensex surged 0.88% and 0.77% respectively, during the period.
In a note provided to Investing.com, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities underlined that the Nifty Bank bulls have now regained strength, successfully defending the crucial support zone of 44,000-43,800. This area also witnesses fresh put writing, indicating strong support.
The next immediate hurdle for the index is positioned at 44,500. A successful breakout above this level is expected to trigger a fresh upward movement, the analyst noted.
“The overall sentiment and undertone in the Bank Nifty Index remain bullish, as long as the mentioned support levels of 44,000-43,800 are held on a closing basis,” Shah added.
The public sector lender Punjab National Bank (NS:PNBK) was the best performer on the Nifty Bank index, jumping 5% on Friday and hitting a new 52-week high of Rs 66.2/share in the session. Private lenders IndusInd Bank (NS:INBK) and Bandhan Bank (NS:BANH) followed the gain on the 12-scrip index.
Federal Bank (NS:FED) was the worst performer on the Nifty Bank index on Sept 1, while IDFC First Bank (NS:IDFB) followed.
Further, NIFTY Bank Futures jumped 340.15 points or 0.77% to 44,630 levels.