More fireworks to come if Bank Nifty closes above 31,000 today, Anil Singhvi says; banks, NBFCs to remain in spotlight
Zee Business Managing Editor Anil Singhvi said that he was optimistic about the outperformance of Bank Nifty and the strength in high beta stocks will likely continue going forward. He said that the banking stocks including the large caps will continue to outperform
The leadership from banking and financial sectors appears to be coming back in the markets. On Tuesday, the Bank Nifty was in a leadership position. Large cap banks like HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank have been at the forefront in terms of participation in the market rally. So, here we provide a glimpse into how long this may play out in the market and whether the outperformance of Bank Nifty will continue?
Zee Business Managing Editor Anil Singhvi said that he was optimistic about the outperformance of Bank Nifty and the strength in high beta stocks will likely continue going forward. He said that the banking stocks including the large caps will continue to outperform.
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However, in the situation of market corrections, the chances of price corrections in beta stocks are also significantly high, the Market Guru said. Beta is a measure of a stock's volatility in relation to the overall market.
People who want to make quick money go for these stocks as the chances of maximizing gains in these stocks are very high, Singhvi said. He further said that the NBFC and banking stocks will continue to hold leadership positions.
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He said that the lifetime high for Bank Nifty is 32,600 and the existing levels are still 1,300 points away from the high. It is still 4-5 per cent down from its life highs. Meanwhile, Nifty is 1500 points above its life time high levels which means that it is 10 per cent above the life highs, he said.
In case of Bank Nifty, it will not be correct to say that this is outperformance, the Managing Editor remarked. All Bank Nifty is doing is catching up with the pace at which Nifty is running. The entire momentum in Bank Nifty is because of private banks. The private banks have been running and the PSU banks have not had enough weightage in this rally.
Bank Nifty appears to be headed towards its lifetime high. He said another interesting thing is that it has spent a lot of time trading in the range between 30,000 and 31,000 and finally it has got a breakout above the level of 31,000.
There will be no stopping for this index if it closes above 31,000 mark on Wednesday, Singhvi opined.
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