Bank Nifty opened strongly today at 55,182.25, up nearly 1% from yesterday’s close of 54,817, and rallied to an intraday high of 55,930.45 rising about 2% amid broad‑based banking sector gains, with most heavyweights posting 1–3% advances.
led the upside with a 2.76% jump to around 1,323.70, followed by(up 2.61%) and (up 2.11%), while and also contributed positively with 1.16% and 1.80% gains respectively.
The index was recently noted around 55,740, showing positive sentiment that highlights the strength in financials despite recent fluctuations. However, analysts suggest that traders will monitor for profit-taking as the index approaches the psychological threshold of 56,000.
Bank Nifty index ended 882.20 points, or 1.58%, lower at 54,821.70 on Thursday, April 9 forming a bearish candle on the daily chart with a minor lower shadow, indicating selling pressure at higher levels, though some buying emerged near the lows.
Banking Sector outlook remains constructive despite near-term margin and MSME risks
Sunny Agrawal – Head of Fundamental Research, explained that fundamentally, the banking sector is well placed to deliver robust earnings growth in 4QFY26 and FY27E in the backdrop of the robust provisional 4QFY26 credit growth reported by all the banks.
Moreover, Agrawal added that the asset quality concerns pertaining to MFIs and unsecured loans seems to be tapering off. However, there can be some concerns on the MSME side due to stress emanating from the ongoing Middle East tension and pursuant disturbance in the energy supply chain.
According to Agrawal, NIMs are likely to remain range bound as benefits of deposit repricing due to 25 bps repo cut in Dec 25 will start reflecting in the ensuing qtrs. Valuations continue to be comfortable with large banks like HDFC and ICICI trading at PBV multiple of 2x.
“Key risk factors to the margins and growth can be challenges on the deposit mobilization, which is an industry wise concern. Albeit off late we have seen acceleration in the deposit mobilization led by wholesale deposits which can weigh on the cost of funds. Overall, we continue to remain constructive on the banking sector with medium to long term perspective,” added Agrawal.
Technical Views
Ruchit Jain, Head – Equity Technical Research, Wealth Management, Motilal Oswal Financial Services, said that the Bank Nifty index has seen a pullback move led by buying interest in the private sector heavyweights. The near term trend remains positive with immediate target seen in the range of ₹56,200-56,700 (50 and 200 DEMA zone). The immediate support is placed around 54,300 and traders are advised to keep a buy on dip strategy.
Sudeep Shah – Head of Technical and Derivatives Research at SBI Securities, added that going ahead, the 55,300–55,400 zone will act as an immediate resistance, while on the downside, the 54,400–54,300 range is expected to provide crucial support for the index. Above 55,400, Index can move towards 56,100.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.