Markets close higher; Banking stocks outperform

Markets witnessed a positive day of trade with the Bank Nifty index closed above the ~35,000 level for first time ever.

Bank Nifty outperformed the Nifty index by ~1% with both the indices posting a strong rally, closing ~0.6.7%/1.5% higher. Banking stocks like Axis Bank, SBI, PNB & Indian Bank were among the top outperformers closing with an addition of continued long positions.

Midcap 100 index closed ~1% higher.

Market breadth ended in the favour of the advances with the advance/decline ratio closing at 2:1x. Nifty and Bank Nifty saw an addition of long positions during the day.

On the options front (February 04, 2021 expiry), across the board option writing was seen in put option strikes as Nifty trended higher. India Vix index closed at 23, down ~1.5%.