Nifty Bank Hits New ATH on Day 2, More Steam Left? Key Levels in Focus

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Nifty Bank Hits New ATH on Day 2, More Steam Left? Key Levels in Focus

By Malvika Gurung

Investing.com -- The prominent sectoral index Nifty Bank continued to hit a new all-time high for the second consecutive session on Friday at 43,339.15, as Dalal Street entered the December monthly derivatives series.

The sectoral index surpassed the 43,000-point mark for the first time on Thursday, recording more than 4% gains in the November F&O series.

Market experts remain bullish on the overall banking pact and expect the ongoing rally in the sector to continue going ahead as margins of lenders are likely to improve in the short to medium term while declining provisioning has improved their balance sheets.

Dovish indications on the size of future interest rate hikes by the US Fed at the FOMC minutes boosted risk appetite and lowered bond yields, improving sentiments and aiding rate-sensitive sectors like banking, on Thursday.

Analysts peg more steam remaining in Nifty Bank and forecast the sectoral index to test 44,000-46,000 levels in the near term. Sumeet Bagadia of Choice Broking sets an immediate target for the index at 44,000 and pegs further upside if it closes above the suggested level.

Saurabh Jain of SMC Global Securities says, “Today, the incremental credit ratio of Indian banks is more than 100, which is also attracting buying interest among Dalal Street bulls."

Read Also: Expert Notes: Market Hitting Record Levels, Rally Highlight & Key Headwind

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