Bank Nifty Breaks Out! HDFC, ICICI Drive Rally - Can 58,500 Be the Next Big Milestone?

Banking stocks witnessed strong upward momentum on June 26, pushing the Bank Nifty index to a new lifetime high of 57,263.45, registering a gain of nearly 1% intraday.

The rally was spearheaded by heavyweight private banks, notably HDFC Bank, ICICI Bank, Axis Bank, AU Small Finance Bank, and Kotak Mahindra Bank, which all clocked notable gains.

HDFC Bank Share Price Today 
HDFC Bank continued its winning streak, gaining for the third consecutive session. The surge comes ahead of the June 27 record date for its upcoming dividend and amid investor enthusiasm around the Rs 12,500 crore IPO of its subsidiary, HDB Financial Services. Today HDFC Bank opened at 1,981.40 and went a high as 2,018.80, and at the moment of writing this story at 2:39 pm, the stock is trading at 2,016.90, 36.70 pts or 1.85 %. 

To boost investors' optimism, the Indian stock market is also rallying, as both the Nifty50 and the BSE Sensex are up by 1%.

Bank Nifty: Top Performers & Sectoral Trends
Stocks of HDFC Bank, ICICI Bank, and AU Small Finance Bank were all trading over 1.5% higher during the day’s session.

The bullish sentiment was largely confined to the private banking space, as several public sector banks like SBI, Federal Bank, Bank of Baroda, Canara Bank, Punjab National Bank (PNB), and IDFC First Bank remained in the red with marginal losses.

Bank Nifty Key Levels To Watch Today 
According to Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, the current rally has been technically validated.

“Bank Nifty has broken out of an Inside Bar pattern on the upside. This suggests a breakout after a brief consolidation. With the daily and hourly momentum indicators showing a positive crossover, the bullish outlook is supported. We expect Bank Nifty to touch levels of 57,600 – 58,000 in the short term. The support base is placed at 56,600 – 56,500,” he said.

Global and Domestic Cues Supporting Sentiment
Sugandha Sachdeva, Founder of SS WealthStreet, attributed the upmove not just to technical strength, but also to positive global cues and macroeconomic optimism.

“We’ve seen both the benchmark indices climbing higher by more than 0.5% wherein the banking index has climbed to a new high surpassing the previous swing high of 57,032.55 and tested a new high of 57,263.45,” she noted.


Sachdeva pointed to reduced geopolitical tensions, particularly due to the ceasefire agreement between Iran and Israel, as well as a growing disconnect between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell over rate cuts.

“This has boosted sentiment that the Fed is likely to consider cutting rates at its July meeting by 25 basis points,” she added.

Additionally, the US dollar index fell to a three-year low of 97.26, further aiding global market liquidity. On the domestic front, S&P Global raised India’s GDP growth forecast to 6.5% from 6.3% for FY26, citing the RBI’s front-loaded easing measures aimed at reviving credit and consumption, as per Sachdeva.

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What Lies Ahead for Bank Nifty?
With improving macro fundamentals and favorable liquidity conditions, market watchers are optimistic about continued momentum in the banking index.

‘We see the banking index, heading higher towards 57,800 and then 58,500 is also a possibility in the near term. On the downside, strong support exists at 56,500 and 55,500,' Sachdeva said.

The sharp rally in HDFC Bank, which holds the highest weightage in the Bank Nifty, remains a key factor in sustaining the current bullish trend.

With market tailwinds gathering strength and sentiment looking optimistic, Bank Nifty could continue its northward journey—provided resistance levels are decisively breached. Investors are advised to watch for key support and resistance points and monitor upcoming macro events including Fed policy decisions and RBI’s monetary cues.
 

Disclaimer

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