Bank Nifty recovers 650 pts from intraday low to reclaim 59,500 amid Sergio Gor's comments: Check key resistance levels

Bank Nifty recovers

• Nifty Bank index jumped 677 points after US-India trade deal comments
• US Ambassador called India "essential partner," boosting market sentiment
• IndusInd Bank led gains; ICICI, SBI, AU Small Finance also rose

Did our AI summary help?

The Nifty Bank index sharply recovered from its day's low on January 12 as markets jumped after US Ambassador Sergio Gor commented on India-US trade deal.

The index rose around 677 points intraday to hit its day's high at 59,540.95.

What did the US Ambassador say?

US Ambassador to India Sergio Gor said there is "no partner more essential than India" to the President Donald Trump-led country, boosting markets. He further added that both the countries continue to engage actively, and the next call on the much-awaited trade deal will take place tomorrow. "President TRUMP will be visiting India in next 1-2 years hopefully," he added.

While assuming charge in New Delhi on Monday, Gor said that Trump had conveyed his best wishes to Prime Minister Narendra Modi, referring to the relationship between the two leaders as genuine. "Real friends can disagree, but resolve the difference," Gor said, framing current trade negotiations as part of a broader, resilient partnership.

Notably, India-US trade deal has seen significant delays, putting pressure on markets for most of 2025 on the back of rising Trump tariffs. Analysts had noted that markets may see some rally in case of any positive news around this front.

Sergio also referred to strategic initiatives like Pax Silica, calling it a US-led framework with India as a key partner. “Both sides continue to actively engage. Not an easy to cross the finish line, but determined,” he said, underscoring the challenges and commitment in ongoing talks.

Senator Marco Rubio added, “This year will be a year of reciprocity,” highlighting the mutual intent to enhance cooperation across trade and strategic sectors.

"Positive statement by U.S. ambassador on continuation of talks on India-U.S. trade deal and reiteration of the importance of India as a trade partner have led to short covering during the day," said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.

Technical view on Bank Nifty:

Axis Direct had said that the trend-deciding level for Bank Nifty today is 59,382. Notably, the index has now crossed this level.

“If Bank Nifty trades above this level, it may rally up to 59609-59967-60195 levels. However, if it trades below 59382 evels, we may witness profit booking in the market, and the index may correct up to 59024-58796-58439 levels,” it said.

For Bank Nifty, the 20-day SMA at 59,500 would act as a key level for traders, said Shrikant Chouhan, Head Equity Research, Kotak Securities. He added that below this mark, the correction wave is likely to continue until 58,800–58,500. Conversely, above 59,500, it could bounce back up to 59,800–59,000, the analyst added.

Choice Broking meanwhile saw immediate support near 59,000, and said that a breakdown could open the door toward 58,900–58,800. On the upside, 59,500–59,600 remains a strong resistance band, and only a decisive move above this zone would revive bullish sentiment, it added.

Top bank gainers today:

IndusInd Bank shares were the top gainer on the index today, rising more than 2 percent each. ICICI Bank shares followed, rising more than 1 percent. State Bank of India (SBI), AU Small Finance Bank, Yes Bank and Union Bank of India shares gained nearly 1 percent each.

Kotak Mahindra Bank and HDFC Bank shares were trading in the green with marginal gains.

Bucking the trend, Punjab National Bank, Axis Bank, Bank of Baroda, Canara Bank, IDFC First Bank and Federal Bank shares fell up to 1 percent.

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