Nifty Bank index jumped to its fresh all-time high of 41,939.75 in early deals on November 9, backed by gains in shares of a majority of components including IndusInd Bank, PNB and Kotak Mahindra Bank.
At 09:30 am, the Nifty Bank index was up 135 points, or 0.32%, at 41,821.55 with all stocks in the green.
The banking index is up 18% this year so far against a 5% gain in equity benchmark Nifty50.
Most banking stocks are up with stellar gains this year because of their better-than-expected September quarter numbers and healthy growth outlook. Moreover, healthy recovery in loan growth, better lending margins and controlled provisions have boosted banking stocks.
On the technical front, the index seems to be well-placed.
Kunal Shah, Senior Technical Analyst at LKP Securities is of the view that the index remains in buy mode as long as it holds the support of 40,800 on the downside.
"The index, once breaches above 42,000, will witness a sharp short covering move on the upside towards 43,000-44,000 levels," said Shah.
As per Mohit Nigam, Fund Manager & Head - PMS, Hem Securities, 41,200 is immediate support while 42,100 is a resistance for the Bank Nifty index.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.