Bank Nifty recovers 300 pts from day's low to cross 59,000: Check key levels to watch out for

Bank Nifty

• Nifty Bank index recovered over 300 points, briefly crossing the 59,000 mark
• Axis Bank and Canara Bank led gains; ICICI and HDFC Bank traded in the red
• Analysts expect consolidation between 58,500–60,100; caution advised

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Bank stocks recorded a sharp recovery in the morning to push the Nifty Bank index  into the green briefly after a four-session losing streak. The index crossed the 59,000-mark, with shares of Axis Bank and Canara Bank leading gains.

After hitting a day's low at 58,737.60, the Nifty Bank index recovered more than 300 points to hit a day’s high at 59,076.10. Check key technical levels to watch out for some upside chances or more downside.

Technical view on Bank Nifty:

Despite the recovery, analysts advise caution. Going ahead, the index is expected to remain in a consolidation phase and build a base within the 58,500–60,100 range over the coming weeks, said Bajaj Broking.

It added that a decisive move above the last two weeks' high of 59,500 could pave the way for a fresh upside toward the recent all-time high near 60,100 in the weeks ahead. "The sharp rally over the past two months remains well-contained within an upward price channel, highlighting sustained demand even at higher levels. On the downside, strong support is placed in the 58,300–58,600 zone, which coincides with the 50-day EMA and the previous breakout region. Holding above this support band would keep the broader trend constructive,” it said.

Choice Broking meanwhile said that the banking index will find immediate resistance at 59,150–59,250, while supports at 58,600 and 58,700 remain critical for preserving near-term stability in the index.

From a technical standpoint, the index remains sandwiched between key reference zones, said SAMCO Securities. "While it is trading below the middle Bollinger Band near 59,200, it continues to defend the 50-day simple moving average placed around 58,700. This narrow compression in price action suggests muted volatility, with the index neither showing signs of a meaningful breakdown nor offering clarity on a sustainable upside move at this juncture," it added.

The domestic brokerage said that the index will find immediate resistance near 59,100, followed by 59,200 on the upside. "A stronger supply zone is visible around 59,350, which has previously acted as a rejection area and remains a key hurdle for any meaningful recovery," it added.

Angel One expects Bank Nifty to find key support at 58,800 -58,500 on the downside, and resistance at 59,300 -59,500 on the upside.

Top losers on the Nifty Bank index today:

Axis Bank shares were the top gainers of the index, rising nearly 1 percent. Canara Bank and Federal Bank shares also gained around 1 percent each.

AU Small Finance Bank, State Bank of India (SBI), Bank of Baroda, Punjab National Bank (PNB) and IDFC First Bank shares were trading in the green with marginal gains. Bucking the trend, ICICI Bank, HDFC Bank, IndusInd Bank and Kotak Mahindra Bank shares were trading in the red.

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