In the last four trading sessions, two private sector banks have seen significant development both related to their shareholding. First is the case where the news came out that FII’s have reduced their holding and in another case a private equity investor sold its stake through a block deal. After both announcements, the stock prices moved up sharply. A number of times in stocks, where there is big institutional holding, there are phases, where it is more of technical reason which keeps the performance down. Now, surprisingly, it is during this period that PSU banks stocks which have been doing extremely well for the last couple of quarters, witnessed some profit booking. In case there are a few more trading sessions where banks see a divergence in performance, one cannot rule that a narrative might come on the street, about how private sector banks are better than PSU banks. It would be better to ignore those noises.
The Nifty Bank index was down 56 points to close at 47,704 but it outperformed the benchmark index. The Nifty50 index fell 148 points to close at 21,517.
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.
The Nifty Bank index opened strong and continued its bull run but it failed to hold on to the momentum and witnessed some profit booking at higher levels. The index formed a ‘Doji kind of candle on the daily charts which suggests indecisiveness among the bulls and bears.
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