Banking stocks rise today. For Nifty, 14,850-14900 levels remain next hurdle

In a relief for the banking sector, India’s top court refused to extend a six-month moratorium on loan repayments that ended on August 31 last year. The Reserve Bank of India had allowed banks to offer the moratorium after a government-imposed COVID-19 lockdown.

The ruling lifted Nifty bank index by 1.7% with IndusInd Bank, ICICI Bank, HDFC Bank and Axis Bank rising over 2% each. The Nifty bank index had fallen over 5% in the past six sessions.

Elsewhere, shares of Adani Ports rose 2.3% after the company said it would buy 58.1% stake in Gangavaram Port for ₹3604 crore.

The rupee today ended 6 paise lower at 72.43 against the US dollar, in line with weakness in other peers against the American currency. However, easing crude oil prices and positive equities lent some support to the local unit and restricted the fall.

Meanwhile, the Indian government said that everybody above 45 years would be eligible for coronavirus vaccination from April 1, expanding its vaccination programme as infections surge again.

Here is what analysts say on today’s market performance:

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

“The short term trend of Nifty remains positive, but market’s inability to sustain above the hurdle of 14850 could be cause of concern. A sustainable move above 14850-14900 levels could pull Nifty towards the next hurdle of 15050 levels in the near term. Any failure could open weakness from the highs. Immediate support is placed at 14700.”

Ajit Mishra, VP – Research, Religare Broking Ltd

“We feel banking might help the index to inch further higher but negative sentiment due to the rise in the COVID cases and mixed global cues would cap the upside. We reiterate our cautious approach and suggest preferring hedged positions.”

Vinod Nair, Head of Research at Geojit Financial Services.

“Domestic market ended the day on a strong footing supported by a rally in banking stocks amidst weak cues from global markets. Sentiments in the banking stocks were lifted post Supreme Court’s order against granting interest waiver and extension of moratorium period. While its decision to not charge compound interest added a minor concern in the banking space. In the global space, European markets pulled back as rising covid infections reflected lockdown worries.”

Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited.

“After a few days of the lackluster movement, the market witnessed a positive trend. The expected levels of the market is likely to be in the range of 14750 and 15000 and it’s going to be crucial for the short-term market scenario to sustain above the 14750 Nifty50 Index level. The momentum indicators like RSI, MACD to support the upside move and indicating potential upside from the current market level.”