Nifty Bank rallies over 1,000 points led by ICICI Bank, HDFC Bank, SBI

ICICI Bank shares are up for the fourth day in a row, adding another 3% on Tuesday after Monday’s 3% upmove. The stock is contributing to over 400 points to the gains on the Nifty Bank, and also is the leading point contributor to the Nifty 50 index. Other contributors to the index upside include HDFC Bank and SBI

ICICI Bank has been leading the gains on the Nifty and the Nifty Bank post its second quarter results. 45 out of the 50 analysts who track the lender have a “buy” recommendation on the stock.

Gains are also being 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 top sectoral gainer for two days in a row, as earnings from lenders like Indian Bank and Canara Bank, who reported better asset quality on a sequential basis, has improved sentiments around PSU Banks, thereby triggering a rally in other names like SBI, ahead of its results.

With Tuesday’s move, the Nifty Bank has reached the higher end of the range of 51,000 – 52,500. Analysts speaking to CNBC-TV18 had mentioned on Monday that in case the Nifty Bank manages to hold on to levels of 51,590 on the downside, it can trigger an upmove towards levels of 52,000 – 52,500 for the Nifty Bank.

Jai Bala of cashthechaos.com believes that the Nifty Bank’s recovery is most likely temporary and would probably lead the next leg of decline. He sees 52,475 – 52,950 as the next level of resistance for the index. He also said that SBI sustaining above the ₹735 – ₹765 range will be important for the bulls.