Bank Nifty Surges 732 Points as Axis Bank Leads Banking Sector Rally
Bank Nifty surged 732.35 points to close at 59,205.45 on Tuesday, gaining 1.25% and ranking as the second-biggest sectoral gainer. Axis Bank led the rally with over 5% gains following strong Q3 FY26 results, while major banks like PNB, BoB, and SBI gained over 2% each. Kotak Mahindra Bank declined 3% post quarterly results. Technical analysts expect continued volatility ahead of the Union Budget, with key resistance at 59,500 and support at 58,800.
*this image is generated using AI for illustrative purposes only.
The Bank Nifty index delivered a strong performance on Tuesday, closing 732.35 points higher at 59,205.45, representing a gain of 1.25%. The banking sector emerged as the second-biggest gainer among major indices, trailing only the metals sector in terms of performance.
Axis Bank Leads Sectoral Rally
Axis Bank shares dominated the banking sector's upward momentum, surging over 5% to trade at Rs 1,322 per share. The private sector lender's strong performance came on the back of better-than-expected results for Q3 FY26, which boosted investor confidence in the stock.
Broad-Based Gains Across Banking Stocks
The rally extended across multiple banking stocks, with both public and private sector lenders participating in the upward move:
| Bank Category | Performance |
|---|---|
| Top Gainers (2%+): | Punjab National Bank, Bank of Baroda, Federal Bank, State Bank of India, Canara Bank |
| Strong Performers (~2%): | Union Bank of India, ICICI Bank |
| Moderate Gains (1%+): | HDFC Bank, Yes Bank |
| Marginal Gains: | IndusInd Bank |
AU Small Finance Bank shares closed with marginal losses, being the only notable decliner among major banking stocks.
Kotak Mahindra Bank Declines Post Results
Contrary to the broader sector trend, Kotak Mahindra Bank shares fell around 3% following the release of its results for the October-December quarter of the ongoing financial year. The decline highlighted mixed investor reactions to quarterly earnings across the banking sector.
Technical Analysis and Market Outlook
Technical analysts noted that Bank Nifty closed with a long bullish candlestick on the daily chart, indicating strong buying interest. Vatsal Bhuva, Technical Analyst at LKP Securities, observed that the index found crucial support near the 58,100 zone and witnessed a sharp rebound after the previous selling session.
Key Technical Levels
| Parameter | Level |
|---|---|
| Current Close: | 59,205.45 |
| Key Resistance: | 59,500 |
| Support Level: | 58,800 |
| Critical Support: | 58,100 |
Analysts cautioned that volatility is expected to remain elevated in coming sessions due to the upcoming Union Budget event. The 20-day moving average and the 59,500 zone are identified as crucial levels, with a sustained close above these levels potentially deciding the next directional move.
Shrikant Chouhan, Head Equity Research at Kotak Securities, emphasized that 58,000 would act as a key level for traders. Below this threshold, the correction wave could continue until 57,500–57,100, while above 59,000, the index could bounce back up to 59,350–59,500.
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