ICICI Bank, AU Small Finance Lead Recovery as Bank Nifty Rebounds Over 1% from Day’s Low

Bank Nifty Gains Over 1% from Day’s Low as ICICI Bank, AU Small Finance Lead Market Rebound

Banking stocks lifted market sentiment on Friday, with the Bank Nifty index rebounding more than 1% from its intraday low, led by strong gains in ICICI Bank and AU Small Finance Bank. The recovery in the banking space came even as the broader benchmarks — the Sensex and Nifty — traded largely flat through the session, suggesting selective buying within financials.

At around 12:50 PM, the Bank Nifty was trading 0.5% higher at 57,816.15, rising sharply from its day’s low of 57,157.85. The rebound marks a notable recovery after the index suffered a technical breakdown earlier this week, which had pushed it to key support levels. Meanwhile, the Sensex slipped 86 points or 0.1% to 83,225, and the Nifty declined 16 points to 25,494, reflecting muted sentiment in non-banking sectors.

ICICI Bank, AU Small Finance Bank, IDFC First Lead Gains in Bank Nifty

Among the Bank Nifty’s 12 constituents, several stocks showed strong momentum during the session.
AU Small Finance Bank led the gains, rising 2.1% to ₹899.20, followed by ICICI Bank, which advanced 1.6% to ₹1,342. IDFC First Bank and Punjab National Bank also joined the rally, gaining 1.1% each, while Kotak Mahindra Bank moved up 0.6% to ₹2,095.

Market experts noted that private lenders and select public sector banks attracted fresh buying interest after a recent correction, as investors found value at lower levels. However, some heavyweight names underperformed — HDFC Bank, SBI, and Axis Bank were marginally lower, slipping between 0.2% and 0.3% each.

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Broader Financial Stocks Show Mixed Momentum

Outside the Bank Nifty index, several major financial stocks also witnessed notable action.
Shriram Finance surged 3.3% to ₹818.25, while the Bajaj twins — Bajaj Finance and Bajaj Finserv — saw healthy gains of 2.9% and 1.4%, trading at ₹1,071.50 and ₹2,092.50 respectively.

However, not all financial counters joined the rally. Bajaj Holdings slipped 3.3% to ₹12,693.75, and Sundaram Finance declined 0.6% to ₹4,831.10, indicating that profit-taking persisted in select midcap names after recent gains.

Analysts say the overall tone in financials remains cautiously positive, supported by strong quarterly earnings, improving credit growth, and expectations of stable interest rates in the coming quarters.

Bank Nifty Technical View: Recovery After Breakdown

Technically, the Bank Nifty rebound comes after a sharp breakdown earlier in the week that triggered short-term bearish sentiment.
According to Hrishikesh Yedve, AVP – Technical and Derivative Research at Asit C. Mehta Investment Intermediates, the Bank Nifty recently broke below its crucial support level of 57,630, signaling near-term weakness. Yedve had warned that if the index stayed below 57,480, it could slide further towards 57,000, with resistance expected around 58,580.

However, Friday’s recovery shows signs of resilience, suggesting that buyers are defending the 57,000 zone, which may act as a strong base going forward.
In its pre-market commentary, Axis Securities identified 57,673 as the trend-deciding level for the day, predicting that trading above this mark could lead to a rally towards 57,826–58,250, while a dip below might invite profit booking towards 56,978.

At present, the near-term trend for Bank Nifty looks constructive, though experts caution that resistance between 58,000 and 58,250 could limit immediate upside potential unless heavyweights like HDFC Bank and SBI join the momentum.

Market Outlook: Banking Stocks Likely to Remain in Focus

Market participants expect banking and financial stocks to remain in focus as investors continue to watch key economic indicators, loan growth data, and global cues.
With domestic macros stable and the festive demand season boosting credit activity, analysts believe private sector banks may outperform in the near term.

“Despite recent volatility, the structural outlook for the banking sector remains positive, supported by strong balance sheets, improving asset quality, and sustained credit growth,” said a Mumbai-based market strategist. “If the Bank Nifty sustains above 57,700 levels, we could see further buying interest emerging towards 58,500 and beyond.”

Summary: Resilient Rebound Amid Broader Market Caution

Friday’s session reflected a resilient rebound in banking stocks, led by ICICI Bank and AU Small Finance Bank, even as the broader market lacked direction.
The recovery from the day’s low underscores continued investor confidence in the financial sector despite technical volatility. As analysts project 58,000–58,250 as the next resistance zone, traders will closely monitor whether Bank Nifty can maintain its upward momentum in the coming week.

• Nifty 50
• Bank Nifty
• Sensex