Bank Nifty outperforms benchmarks, rises above 56,400; HDFC Bank jumps over 2.5%: What lies ahead?

Reports coming in for today mention that Bank Nifty outperformed key market indices on September 18 and rose above 56,400 with HDFC Bank leading the upside.

The heavyweight bank stock rose over 2.5%, followed by Punjab National Bank and IndusInd Bank, which rose 0.6% each. Other gainers in the sectoral index are Axis Bank and Kotak Mahindra Bank.

At 2:15 pm on September 18, Bank Nifty was trading 0.65% elevated at 56,426.55, thus outperforming key market indices The two key benchmark indices, whichclimbed 0.4%.

"The broader structure stays wary, with the index continuing to trade below key resistance marks and yet to establish a sustained Elevated High–Elevated Low formation. 55,700–55,800 stays the immediate backing zone, marked by the identical lows of the last two sessions. Holding above this zone is crucial to maintain the current consolidation; a break below 55,700 would resume the broader corrective trend and open downside towards 55,200 and 54,800 marks.

"On the elevated side, Thursday’s high of 56,570 will acts as an immediate hurdle. A sustained move above this level could trigger a recovery towards the key resistance of 57,000 marks," stated Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

"On the downside, immediate backing is placed at 55,800, while resistance is noted at 56,500. Positional backing stays at 55,500. A decisive break below 55,800 could intensify selling pressure in the index," stated Vatsal Bhuva, Technical Market observer at LKP.

"The immediate resistance is positioned near 56,600, and a decisive move above this level could lead to an up move towards 57,000. On the downside, backing is placed around 55,700. A break below this level could trigger further softness, potentially taking the index towards 55,500," stated Axis Securities.