Nifty Bank Poses Strong Recovery Ahead of US CPI, IndusInd Bank Shines

By Malvika Gurung

Investing.com -- The domestic market indices closed with minor gains on Wednesday in a volatile session ahead of the US inflation data release later in the day.

Key sectoral index Nifty Bank gained over 0.4% in Wednesday’s intraday trade and closed the session 0.31% or 132.9 points higher at 43,331.05 levels, with most constituent stocks ending in the green.

In a note provided to Investing.com, Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities stated that the Nifty Bank index witnessed a strong recovery by the bulls after making a weak start.

The support level at 43,000 demonstrated a strong demand zone. Currently, the immediate resistance can be seen at 43,500, and surpassing this level would clear the way for further gains toward 44,000, said Shah.

“Market participants are keeping a close eye on the upcoming US CPI inflation data, and positive comments by the Federal Reserve Chairman have the potential to restore momentum in the market,” added the analyst.

Private sector lender IndusInd Bank (NS: INBK ) topped the 12-scrip sectoral index, along with the benchmark indices Nifty50 and Sensex .

Private banks Federal Bank (NS: FED ) and Bandhan Bank (NS: BANH ) followed the Mumbai-based lender, while the state-owned lenders Punjab National Bank (NS: PNBK ) and State Bank of India (NS: SBI ) exerted pressure on the sectoral index.

PNB shares tanked 4.7% on Wednesday.

Further, Bank NIFTY Futures rose 112.8 points or 0.26% to 43,315 levels.

Benchmark indices Nifty50 gained 0.27% and Sensex added 178.87 points or 0.29% on Wednesday.

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