Mumbai, Dec 4 (IANS): The Bank Nifty index witnessed a massive run up of 1,600 points during the day and managed to hit a new lifetime high of 46,484 on Monday, surpassing its previous high of 46,369 recorded in July 2023, said Ajay Menon, MD & CEO, Broking & Distribution, MOFSL.

The banking index was underperforming for the past couple of weeks, and Monday's recovery has added more momentum to the broader market, he said.

Banking stocks witnessed fresh buying following BJP's strong show in state elections, which has bolstered expectation for political continuity in 2024.

This augurs well for macro and policy momentum for India, which, at the moment, is seeing the highest growth among major economies - both in terms of GDP as well as corporate earnings. This in turn could boost financial and banking activities.

The rate-sensitive Bank Nifty index managed to hold support near 50 WMA (weekly moving average) and moving in a rising channel. As per the recent setup, now it has to hold above 44,444 levels to extend the move towards 47,000 and 47,500 zones.

Axis Bank, ICICI Bank and HDFC Bank could take the lead to accelerate the further move in the index, Menon said.