Bank Nifty Surges as Crude Eases; Banks Broad-Based

Bank Nifty rallied about 1.76% on Wednesday, or roughly 1,630 points, to cross 61,350 intraday as easing crude supported domestic equities. Buying was broad-based. BANKBARODA gained 5.77%, Federal Bank 5.09% and Punjab National Bank 4.71% with PSU banks catching up after a good run in private banks. The reported triggers were Brent falling to a two-month low near $89 as US officials downplayed further action against Iran, firm foreign inflows after a long period of outflows, and attractive valuations after the earlier downtrend. Technically, the index has cleared the falling trendline from the February high, the 50 and 200 SMAs, and the Falling Window zone near 60,440. It has reached close to the all-time high 61,764 resistance, with a Piercing Line near the October low having marked the turn. RSI near 79 is overbought, so consolidation near resistance would not be unusual. The 60,440 zone is the level to watch on the downside, and crude’s direction remains the key factor. When fundamentals like falling crude and foreign inflows align with a technical breakout, the move gains weight, but overbought RSI near resistance calls for caution. Disclaimer: This is for educational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions. SEBI Registered Research Analyst — INH000025212.