Have housing finance companies' stocks hurt the rising trend of Nifty Bank?

One can say this is a minor impact on the Nifty Bank trend but one should not forget that if the index is unable to absorb the selling pressure now, then it may lead to heavy sell-off going ahead.

Although there is no direct correlation between housing finance companies' (HFCs) stocks and Nifty Bank constituents, still the liquidity crisis around Dewan Housing Finance Corporation (DHFL) and Indiabulls Housing Finance have affected the sentiment severely. Various banks have exposures in these HFCs impacting the rising trend of Nifty Bank.

Earlier, the Nifty Bank looked set to cross the range of 31,700 – 31,800 with the strong support of 31,200 on closing basis. It made almost four attempts to climb towards 31,800 with every dip witnessing buying momentum.

With several doubts looming over the functioning of these HFCs, the Nifty Bank