Bank Nifty surges past 58,000-mark, led by strong Q2 results by private banks; analysts say next resistance is 58,300

Bank Nifty at record high

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26 Aug, 2025 12:21

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Bank Nifty hit a fresh record high on October 20, fueled by sharp rally in private lender stocks post-strong second quarter results. The sectoral index rose over 500 points, or around 1 percent, to 58,242.50.

AU Small Finance Bank shares were the top gainer on the index, rallying nearly 8 percent to trade at Rs 854.10 apiece. While the bank's net profit dropped around 2 percent on-year to Rs 561 crore in Q2 FY26, its net interest income rose nearly 9 percent YoY to Rs 2,144 crore.

Federal Bank and IDFC First Bank shares surged around 7 percent each on strong September quarter results.

Punjab National Bank (PNB), Axis Bank and Canara Bank shares jumped more than 2 percent each, while IndusInd Bank, State Bank of India (SBI) and Bank of Baroda shares were up around 2 percent each. Heavyweights Kotak Mahindra Bank and HDFC Bank shares were also trading in the green with marginal gains.

Bucking the trend, ICICI Bank shares dropped more than 2 percent after the private lender reported moderate loan growth in the second quarter of the financial year 2026.

'Cautiously optimistic outlook'

“If selling pressure re-emerges and the index decisively slips below 57,500, it could trigger a correction towards 57,000 and 56,850. On the upside, immediate resistance is placed at 58,000, followed by 58,300 and 58,683,” said Hardik Matalia, Derivative Analyst at Choice Broking.

“Technical indicators reflect a cautiously optimistic outlook. The RSI on the weekly chart, currently at 63.21 and trending higher, signals improving momentum. Moreover, the index is trading above its 20-day, 50-day, and 200-day EMAs, highlighting a supportive structure for the continuation of the uptrend. A decisive close above 58,000 would strengthen the bullish bias, while failure to sustain could invite weakness. Traders should stay constructive yet disciplined, monitoring 57,000 on the downside and 58,000 on the upside for the next directional move,” the domestic brokerage said.

The banking index scaled a new record high, backed by strong participation across private and PSU banks, said Ajit Mishra, SVP of Research at Religare Broking. The next upside targets are placed at 58,500 and 60,000, while supports are identified at 56,500 and 55,800 in case of profit-taking, he added.

Rajesh Bhosale, Equity Technical Analyst at Angel One had meanwhile said that the 57,300 – 57,000 is the support level for the index, while resistance lies at 58,300 – 58,500.

'Index to head towards 59,000 in the coming sessions'

“Bank Nifty formed a strong bull candle with a higher high and higher low signaling strength. Index in the process rallied to a fresh all-time high. Going ahead bias remain positive and index to head towards 58,500 and 59000 levels in the coming sessions. With immediate support placed at 57000-56700 levels being the recent low and recent gap area,” said Bajaj Broking.

For Bank Nifty traders, 57,000 would act as a strong support zone, said Amol Athawale, VP Technical Research, Kotak Securities. As long as it continues trading above this level, the bullish sentiment is likely to persist. On the higher side, it could move up to 58,000-58,500, he added.

Also read: Our LIVE blog on stock market updates

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