Nifty 50 set to touch 31,500-mark, Bankex at 35,500-level: These stocks should be on your watchlist
The Nifty Bank finished at 30,426.80 level gradually up by 6.25% or 0.02%. On the other hand, the S&P Bankex completed slightly lower by 14.20 points or 0.04% at 31,141.94.
The banking stocks are among the more attractive investment options on stock exchanges. On Friday, the banking indexes were performing mostly on muted level. The Nifty Bank finished at 30,426.80 level gradually up by 6.25% or 0.02%. On the other hand, the S&P Bankex completed slightly lower by 14.20 points or 0.04% at 31,141.94. Among gainers were stocks like Federal Bank, IDFC First Bank, HDFC Bank, SBI and PNB rising in the range of 0.49% to 3% on Nifty index. Meanwhile, the losers list included stocks like IndusInd Bank, Bank of Baroda, RBL Bank, Axis Bank, Yes Bank, Kotak Mahindra Bank and ICICI Bank sliding by 0.10% to over 2% on the index. However, Mustafa Nadeem, CEO of Epic Research is bullish on banking stocks.
In fact, he sees, Bank Nifty to remain strong and further test higher levels of 31000 - 31400. BSE Bank index is also seeing good momentum and we expect it to test 35200 - 35500 in coming weeks. This means, if you are holding a bank stock, well they are set to make you rich. Also, few investment options were made in terms of which banking stocks can be best bet ahead for new investors.
Talking about Nifty, Nadeem said, “Nifty bank is aggressively bullish as compared to any other index and has been outperforming the index and other sectors lately. The move is based on the stocks that are weighed heavily and which are seeing long positions being built up. These stocks with higher weight are seeing 52 weeks new highs, some of them are at new all time highs.”
— Zee Business (@ZeeBusiness) March 29, 2019
As per Epic Research, the stocks that are actually pulling it up to the all-time high levels are HDFC Bank, Axis Bank and ICICI Bank. The blue chips are the most favored on the street and not any dips are left behind by long term investors.
Apart from this, there were other performers like RBL Bank, IndusInd Bank, Kotak Bank that joins the list are seeing their levels mostly close to some percentage of their all-time highs. So any correction there is an opportunity as well. The recent revival in Yes bank and SBI is also fueling this momentum, added Nadeem.
For investors, Nadeem says, “The fact is that most funds/mutual funds as well have these stocks in the holding and are seen as a safe bet; not just among the fund houses or institutional players but also large retail participation as well.”
He finally added, “Investors should also note that since they are at all time high we believe the rationale should be Buy on dips which are of around 5%. That would favour the risk-reward and apply the scattered approach in investing these indices by utilizing the dips.”
Hence, the new bulls of Sensex and Nifty are banking stocks.