Bank Nifty Snaps 3-Day Losing Streak with 0.60% Gain Led by IDFC First Bank
Bank Nifty recovered 0.60% to 59,155.45 points on January 22, ending a three-day decline. IDFC First Bank led gains with nearly 3% jump to ₹83.81, nearing its ₹87 52-week high. PSU banks outperformed with Nifty PSU Bank index rising over 2%, while some private banks like IndusInd Bank declined. Technical analysts identify support at 58,500-58,600 and resistance at 59,100-59,500.
*this image is generated using AI for illustrative purposes only.
The Bank Nifty index staged a recovery on January 22, gaining 0.60% to reach 59,155.45 points and breaking a three-session losing streak. The banking sector's performance aligned with broader market strength, as overall stock markets remained in positive territory during the trading session.
Top Performers Drive Banking Rally
IDFC First Bank led the charge among banking stocks, jumping nearly 3% to trade at ₹83.81 per share. The stock's strong performance brought it closer to its 52-week high level of ₹87, highlighting investor confidence in the lender.
| Top Gainers | Performance |
|---|---|
| IDFC First Bank | Nearly 3% gain to ₹83.81 |
| Canara Bank | Nearly 2% gain |
| Bank of Baroda | Nearly 2% gain |
| State Bank of India | Nearly 2% gain |
| Federal Bank | Over 1% gain |
| Union Bank of India | Over 1% gain |
PSU Banks Outperform Broader Index
The Nifty PSU Bank index demonstrated exceptional strength, outperforming the broader Bank Nifty with gains exceeding 2%. This outperformance was driven by strong rallies in public sector banking stocks, with Bank of India and Indian Bank leading the charge with gains of up to 5%.
Among other notable performers, Kotak Mahindra Bank, Axis Bank, and Punjab National Bank each registered gains of nearly 1%. HDFC Bank and AU Small Finance Bank also traded in positive territory with marginal gains.
Mixed Performance Across Banking Sector
Despite the overall positive sentiment, some banking stocks bucked the trend. IndusInd Bank declined more than 1%, while Yes Bank and ICICI Bank posted marginal losses, indicating selective stock-specific movements within the sector.
| Underperformers | Performance |
|---|---|
| IndusInd Bank | Declined over 1% |
| Yes Bank | Marginal losses |
| ICICI Bank | Marginal losses |
Technical Outlook and Key Levels
Technical analysts have identified crucial support and resistance levels for the Bank Nifty. According to Bajaj Broking, the 58,700-59,000 zone remains key short-term support, while a decisive break below 58,278 could accelerate downside movement. On the upside, immediate resistance stands at 59,500, with the 60,200-60,400 all-time high zone presenting a major hurdle.
Rajesh Bhosale from Angel One suggests support levels at 58,500 and 58,300 on the downside, with resistance at 59,100 and 59,500 on the upside. Aakash Shah from Choice Equity Broking noted that while Bank Nifty shows relative resilience, it remains below key resistance levels, with immediate support near 58,500-58,600.
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