Bank Nifty Hits All-Time High: HDFC Bank Contributes Bulk of the Gains

On Wednesday, Bank Nifty witnessed a significant surge of over 1200 points, or 2.49%, hitting a fresh all-time high. The previous all-time high was recorded on June 3, 2024, and almost 11 trading sessions later, Bank Nifty has set a new record.

The Consolidation Phase

Before this impressive move, Bank Nifty traded within a tight range for nearly nine trading sessions, confined to the high-low range of the June 4, 2024, candle. This particular candle, known as a Mother Candle, had a range of almost 9%. Subsequent price action remained within this range, indicating a period of consolidation.

The Breakout

On Wednesday, Bank Nifty broke out above the high of the Mother Candle, signaling a bullish price movement. An upside breakout of a mother candle suggests a continuation of the upward trend, driven by strong buying momentum surpassing previous resistance levels. This breakout marks a significant shift in market sentiment, indicating potential further gains.

Performance in June and 2024

In the month of June, Bank Nifty has risen by 5.70%, contributing to a 7.19% increase in 2024. This robust performance highlights the strength and resilience of the banking sector within the broader market context.

Top Contributors to Bank Nifty Gains

Here are the top five stocks contributing to Bank Nifty’s gains since June 4, 2024:

HDFC Bank

The major private sector lender, HDFC Bank, has contributed the most, adding about 2275 points to the Bank Nifty index since June 4, 2024.

ICICI Bank

ICICI Bank has also played a significant role, contributing approximately 893 points to the index.

Axis Bank and SBI

Axis Bank and SBI have combinedly added 836 points to the Bank Nifty since June 4, 2024, reflecting their strong performance.

Kotak Bank

Lastly, Kotak Bank has contributed 291 points to the Bank Nifty index from June 4, 2024, till date.

Conclusion

The recent surge in Bank Nifty, culminating in a new all-time high, underscores the robust performance of key banking stocks. The breakout from the Mother Candle’s range signifies strong bullish momentum, pointing towards continued upward movement. With significant contributions from leading banks like HDFC, ICICI, Axis, SBI, and Kotak, the banking sector remains a critical driver of market gains.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.