The markets opened on a strong note today with the benchmark indices- Sensex and Nifty- recording new highs in the opening hour of trade. The leaders in today’s rally were private banks like ICICI Bank, Axis Bank and HDFC Bank.
Also this time, PSU banks too have joined the rally.
The Bank Nifty has surged over 15% in the month of March, making it one of the top sectoral gainers. This sudden surge is on the hopes that Reserve Bank of India (RBI) is likely to hold key rates in its next monetary policy review as the Consumer Price Index (CPI) fell to a 25-month low in February, market expects share.
So, is the sudden upmove in the banking space after months of underperformance likely to sustain? Helping us answer this question is Ranak Merchant, Technical Analyst - Strategies of Sushil Financial Services.
