Bank Nifty gains over 1% from day’s low as ICICI Bank, AU Small Finance stocks lead rebound

Banking stocks led the market recovery on Friday, with the Bank Nifty index trading 0.5 percent higher at 57,816.15. The index rose more than 1 percent from its intraday low of 57,157.85. The rebound came even as broader benchmarks were largely flat, with the Sensex down 86 points or 0.1 percent at 83,225, and the Nifty lower by 16 points at 25,494 around 12:50 pm. Market breadth remained weak, with 1,578 shares advancing and 2,076 declining.

Bank Nifty top gainers and losers today

Within the 12-stock Bank Nifty index, AU Small Finance Bank, ICICI Bank, IDFC First Bank, and Punjab National Bank stocks were among the top gainers. AU Small Finance Bank rose 2.1 percent to Rs 899.2; ICICI Bank gained 1.6 percent to Rs 1,342; IDFC First Bank advanced 1.1 percent to Rs 81.3; and PNB added 1.1 percent to Rs 121.8.

Kotak Mahindra Bank also traded firm, up 0.6 percent at Rs 2,095. However, HDFC Bank, SBI, and Axis Bank shares were marginally lower, declining 0.2-0.3 percent each.

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Broader banking stocks action today

Outside the Bank Nifty basket, financial stocks such as Shriram Finance and the Bajaj twins -- Bajaj Finance and Bajaj Finserv -- also saw buying interest. Shriram Finance rose 3.3 percent to Rs 818.25, Bajaj Finance gained 2.9 percent to Rs 1,071.50, and Bajaj Finserv was up 1.4 percent at Rs 2,092.50.

In contrast, Bajaj Holdings fell 3.3 percent to Rs 12,693.75, while Sundaram Finance slipped 0.6 percent to Rs 4,831.10.

Bank Nifty technical view

The recovery follows a technical breakdown earlier in the week. On Thursday, Hrishikesh Yedve, AVP - Technical and Derivative Research at Asit C Mehta Investment Interrmediates, had said that the Bank Nifty had broken support at 57,630. This signalled potential weakness if the index remained below 57,480, with the next downside target at 57,000. He pegged resistance at 58,580.

Axis Securities, in its pre-market note on Friday, identified 57,673 as the trend-deciding level for the day. It projected that if the index traded above this level, it could rally towards 57,826-58,097-58,250, while a dip below it might trigger profit booking towards 57,402-57,249-56,978.

The near-term trend appears constructive, but resistance around the 58,000-58,250 range may limit the upside.

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