PSU banks hit fresh 52-wk high as Bank Nifty at record levels

Market


A slew of PSU banks hit a 52-week high as the Bank Nifty touched a record high of 42,860.55 Wednesday before settling at 42729.10, up 0.64% from its last closing. Among those that hit new 52-week highs were Bank of Baroda at 170.30, Bank of India ( 81), Canara Bank ( 326.55), Indian Bank ( 279.45) , PNB ( 50.85) .

SBI ended the session just 2.6% away from its 52-week high of 622.7 hit on 7 November. PNB, BoB and SBI make up the 12-member Bank Nifty.

“Most of these banks are under-owned and available at cheap valuations compared to their private sector peers,” said Rajesh Palviya , vice-president (research), Axis Securities . “This rally has been led by banks which have outperformed other sectors in the current leg and that could continue. Nifty , which closed at 18,267 is still below its record high of 18,604.45 while Bank Nifty is making progressively new records on improved asset quality and credit growth of 129 trillion as of 21 October being at a record high.”

Other analysts recommend buying Bank Nifty on dips.

“The Bank Nifty index continued its outperformance and the index managed to hold the critical support zone 42,500 -42,400,” said Kunal Shah, senior technical analyst at LKP Securities. “The index on the upside faces a hurdle at 43,000 where the highest open interest is built up on call side.”

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