The Bank Nifty index staged a notable intraday rebound on January 29, closing just shy of the 60,000 psychological level as sustained buying emerged across key private and public sector lenders. The index ended the session at 59,921.1, up 0.5 percent or 322 points, after recovering nearly 582 points from its day’s low of 59,339. This recovery places the index on course for its third straight day of gains, a pattern that is drawing attention from traders tracking short-term momentum in the banking space.

The move was led by Axis Bank, which gained more than 2 percent during the session, while AU Small Finance Bank and State Bank of India advanced over 1 percent each. Gains were also visible in heavyweights such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, IDFC First Bank, and Punjab National Bank, which traded marginally higher. However, the rally was not uniform across the board. IndusInd Bank, Yes Bank, Bank of Baroda, Union Bank of India, and Canara Bank remained under pressure and traded in the red, suggesting that the buying was selective rather than broad-based.

This selective accumulation in index heavyweights was sufficient to push the Bank Nifty toward a critical resistance zone that traders have been closely watching. Market participants note that the 59,900–60,000 range represents an immediate resistance band. According to Hitesh Tailor of Choice Broking, the index faces strong resistance near these levels, while immediate support is seen in the 59,300–59,400 zone. Rupak De of LKP Securities similarly highlighted 59,700 as a key hurdle, with support placed at 59,400 and 59,000.

Bajaj Broking added a broader technical perspective, indicating that volatility is likely to remain elevated in the coming sessions due to the Union Budget scheduled for February 1 and uncertain global cues. The brokerage expects the index to consolidate in a wide range between 58,500 and 60,400 in the near term. A decisive breakout above the recent high of 60,400, it noted, could open the path toward 61,500. On the downside, the 58,000–57,500 zone is seen as a strong support area, aligning with the 100-day EMA and a previous breakout region. The daily stochastic indicator has generated a buy signal, lending further support to the current positive bias.

The intraday recovery and continued gains come at a time when banking stocks are increasingly being seen as a barometer for broader market sentiment ahead of the Budget. Banks typically react swiftly to expectations around fiscal policy, credit growth, government borrowing, and liquidity conditions. As such, positioning in Bank Nifty often reflects how traders are interpreting the macro backdrop.

The current move suggests that market participants are gradually building positions in frontline banking names despite looming event risk. The fact that both private lenders like Axis Bank and PSU banks like SBI are participating indicates that the interest is not confined to a single segment of the banking ecosystem. However, the divergence seen in stocks such as IndusInd Bank and some PSU names also shows that investors are discriminating based on stock-specific factors rather than adopting a blanket approach.

From a broader market perspective, the Bank Nifty’s ability to hold above the 59,300 zone and repeatedly attempt a move toward 60,000 signals underlying strength in the index. Banking stocks carry significant weight in benchmark indices, and their stability often provides a cushion during volatile sessions. The ongoing recovery from intraday lows indicates that dips are being bought into, at least in the short term.