Will this banking stock continue to outperform?

Technically, the stock is forming a saucer pattern and is currently trading near the pivot point of the saucer pattern, which has a length of 32-week and depth of over 20 per cent.

Bank Nifty had hit a fresh all-time high of 38,112.75 on September 17, 2021. With this, it surpassed its previous all-time high of 37,708.75, which was registered in mid-February.   

On a YTD basis, Bank Nifty is up by nearly 17.3 per cent as against 24.4 per cent returns delivered by Nifty. However, among the banking stocks, this one stock has recently been  outperforming the banking as well as Nifty index.   

The stock is Kotak Mahindra Bank. On an MTD basis, it is up by nearly 15 per cent as against gains of 0.83 per cent of Bank Nifty and Nifty gains of 1.47 per cent thereby, outperforming by a wide margin.   

The bank has recently agreed to subscribe to 1,67,25,100 equity shares of KFin Technologies Private Limited for a consideration of approximately Rs 310 crore, translating into an equity shareholding of 9.98 per cent on September 19, 2021.  

Furthermore, the representatives of Kotak Mahindra Bank Limited shall be speaking to investors at JP Morgan India Investor Summit 2021 on September 21.   

Technically, the stock is forming a saucer pattern and is currently trading near the pivot point of the saucer pattern, which has a length of 32-week and depth of over 20 per cent. Once this breakout materialises as the measured move target, the stock could see a good upmove in the medium to long term.