PSU banks hit fresh 52-wk high as Bank Nifty at record levels
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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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.