Navigating bull run: Rajesh Palviya's insights on Bank Nifty and sectoral moves

“The overall structure is still bullish for Bank Nifty. The major trigger was HDFC Bank. Though most private banks have done well in the last couple of days, stocks like ICICI Bank, Kotak Bank, and Axis Bank have also participated in this rally,” says Rajesh Palviya of Axis Securities. Edited excerpts:

ET Now: I want to talk about the Bank Nifty in particular because, even on days when Nifty was gaining, you have seen Nifty Bank come under a little bit of pressure. This is on the back of the quarter one updates that have come out recently. Federal has done exceedingly well, while HDFC Bank, on the flip side, has disappointed. PSU banks are riding high on their cash deposit ratio. So, tell us what levels you are watching out for Nifty Bank going ahead, and also give us a sense of what we can expect when these numbers finally come out for quarter one. How would you prefer to play this sector? Would it be private versus PSUs, or are you going to be stock-selective in both sectors?

Rajesh Palviya:

Bank Nifty was muted for the week, ending around 52,500. However, looking at the data setup, 52,000 has attracted more put writing, so that is likely to act as a good support area in a decline. So, 52,000 would be the immediate and important support area on the downside. On the higher side, 53,000 would act as a supply zone, with major call concentration placed around that strike. I think if it crosses 53,000, then we may attract short-covering action in the market and see further higher levels.

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