Nifty Bank crosses 1,000 points led by ICICI Bank, HDFC Bank, SBI

The Nifty Bank index rose over 1,000 points on Tuesday, leading the recovery over the Nifty 50 index, led by index heavyweights like ICICI Bank and HDFC Bank. India’s largest lender State Bank of India (SBI) is also contributing to the upward movement.

Shares of ICICI Bank rose for the fourth day in a row, adding another 3% on Tuesday after Monday’s 3% gain. The stock contributes over 400 points to Nifty Bank’s gains, and is also the leading points contributor to the Nifty 50 index. Other contributors to the rise in the index include HDFC Bank and SBI

ICICI Bank led Nifty gains and Nifty Bank posted its second quarter results. 45 of the 50 analysts who follow the lender have a buy rating for the stock.

The profits are also led by State Bank of India (SBI), India’s largest lender. SBI gained as much as 5% on Tuesday. The Nifty PSU Bank index has also been the biggest sectoral gainer for two days in a row as gains from lenders like Indian Bank and Canara Bank, which reported better asset quality on a consecutive basis, have improved sentiment around PSU Banks, fueling a rally in other names like SBI, before the results.

With Tuesday’s move, the Nifty Bank has touched the upper end of the 51,000-52,500 range. Analysts who spoke to CNBC-TV18 had said on Monday that if the Nifty Bank manages to hold the 51,590 level at the downside, it could trigger a rise towards 52,000-52,500 levels for the Nifty Bank.

Jai Bala of cashthechaos.com believes that the Nifty Bank’s recovery is most likely temporary and is likely to herald the next phase of downturn. He sees 52,475 – 52,950 as the next resistance level for the index. He also said that SBI maintenance above the range of ₹735-₹765 will be important for the bulls.