D-Street Buzz: HDFC twins, ICICI Bank and Kotak Mahindra Bank drive rally

Banking and financial stocks have been the moving factor for more than a month now.

Bank Nifty on June 16 gained 383.80 points or 1.93 percent to close at 20,296.70 after witnessing a swing of over 1,100 points intraday. The rally was led by Federal Reserve's expanded bond buying programme.

The index opened on a strong note at 20,500.65 and went upto 20,638.85, an intraday high, but failed to hold on to 700 points gains. It corrected sharply from higher levels and drifted towards 19,500 levels in later part of the session.

However a swift recovery was seen from lower levels and the index erased all its intraday losses to close above 20,200 levels.

"The index formed a small bodied red candle with long lower shadow which suggests dips are being bought into at lower levels while multiple hurdles are intact at higher zones. Looking at current chart structure, if Bank Nifty sustains above 20,200, then we may see a bounce towards 20,700 and then 21,200 levels while on the downside major support is seen at 19,500 levels," Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services, told Moneycontrol.

The rally in index was supported only by three stocks - HDFC Bank (up 4.27 percent), ICICI Bank (up 3.58 percent) and Kotak Mahindra Bank (up 2.23 percent). Federal Bank was up half a percent.

However, the rest of stocks were losers. Bank of Baroda, Axis Bank, IndusInd Bank, PNB and IDFC First Bank were down 1.4-2.4 percent. SBI was down half a percent.

Nifty Financial Service index was also strong, rising 2.77 percent to 10,089.95 as apart from banks, HDFC was the biggest gainer with 4 percent rally.