Bank Nifty Gains Momentum Following Strong Q4 Performance from Major Private Banks
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Synopsis
Strong Q4 results from HDFC Bank and ICICI Bank boost investor confidence in the banking sector, with analysts forecasting a positive market reaction as Bank Nifty shows bullish momentum.
Key Takeaways
- Bank Nifty index surged 2.2% on April 17.
- HDFC Bank reported a net profit rise of 6.7% YoY.
- ICICI Bank's net profit increased by 18% YoY.
- Yes Bank's profit surged 63.7% YoY in Q4.
- Market analysts predict further positive movement.
Mumbai, April 20 (NationPress) Strong performances from key private banks such as HDFC Bank and ICICI Bank indicate a growing investor confidence in the fundamentals of the sector. Analysts predict a positive reaction in the stock market to their Q4 FY25 results when trading resumes on Monday.
The Bank Nifty index experienced a remarkable increase of 2.2 percent on April 17, concluding at 54,290.20, just 177 points below its 52-week peak of 54,467.35.
This surge was fueled by significant gains from major players like HDFC Bank and ICICI Bank. The overall banking sector demonstrated robust strength, mirroring the rising investor confidence.
HDFC Bank, the largest private sector lender in India, reported a standalone net profit increase of 6.7 percent (year-on-year) to Rs 17,616 crore for the fourth quarter of FY25, with a sequential rise of 5.3 percent.
ICICI Bank, the second-largest private lender in India, showcased impressive Q4 FY25 results, with net profit escalating by 18 percent year-on-year (YoY) to Rs 12,630 crore.
Yes Bank also exhibited strong performance in the January-March 2025 quarter (Q4), with net profit surging 63.7 percent year-on-year (YoY) to Rs 738.12 crore.
Market analysts note that Bank Nifty has formed a strong bullish candle on the daily chart, achieving a high of 54,407.20—only 60 points away from its all-time high.
In the past seven trading sessions, the index has impressively gained 10.68 percent, rallying over 5,250 points since its recent low.
“The consistent upward movement, along with a close near 54,290 on robust volumes, indicates strong buying interest and sustained bullish momentum. Any pullbacks towards 53,600 or 53,000 are likely to be seen as buying opportunities by investors,” noted Kailash Rajwadkar of Choice Broking.
Moreover, both PSU and private banking indices are showing bullish formations. The PSU Bank index has confirmed an inverted Head & Shoulders breakout, supporting the case for further upward movement.
If Bank Nifty manages to decisively close above 54,300, it could target levels of 55,000 and 56,000 in the upcoming sessions, as per Fibonacci extension projections. The overarching trend remains strongly positive with active participation from the sector, stated Rajwadkar.
