Nifty Bank Surges To An Eight-Month High In Two Sessions
The Nifty Bank surged 1,800 points over the last two trading sessions, the best such run since March.
The 12-stock gauge ended Tuesday’s session with gains of 3.17%, or 790 points, at 25,682—also the highest in eight months. The rally added to the index’s 4.1% or 900-points gain on Monday.
ICICI Bank Ltd. and IndusInd Bank Ltd. were the top two gainers. These two private lenders were also among the key triggers for the rally over the last two sessions. ICICI Bank and IndusInd Bank reported their quarterly results after market hours on Friday. While ICICI Bank reported its highest ever quarterly profit, multiple analyst rating upgrades for IndusInd Bank enthused investors.
“Although the trend of the Nifty Bank looks positive on a mid-term basis, the closing has been right near its resistance zone,” said Kunal Rambhia, founder and fund manager of The Streets. “25,750-25,950 can be the best zone to go contra on the Nifty Bank.”
Among the Nifty Bank constituents, India’s largest lender, State Bank of India, will report its second-quarter results on Wednesday.