Nifty Bank rises for third session, approaches record high; what's powering the rally 

Bank Nifty has approached its record high with the 12-stock index rising for the third consecutive session. The banking index has gained 6.48% in a week and 12% in a month. Rally in the banking stocks comes in line with a stellar recovery in Indian market powered by FII inflows and a fall in Brent crude oil prices.

FII inflows in November reached Rs 66,302 crore till date.

Brent crude prices have slipped 13% from $118 per barrel at the end of October 2026 to $92 per barrel on hopes of peace talks between US and Iran.

Strong Q2 earnings, healthy credit and deposit growth and improving asset quality of the lenders also pushed banking stocks toward record high this year.

The index hit a record high of 61,764.85 on February 3, 2026.

The 12-stock index closed 1.19% or 726 pts higher at 61,518 in the current session.

Vatsal Bhuva, Technical Analyst at LKP Securities said, "Bank Nifty is displaying exceptional strength and is trading close to its all-time high. However, the index has entered a highly overbought zone on the RSI front, warranting some caution. Traders holding long positions can continue to ride the uptrend while maintaining a trailing stop-loss of 61,000. Immediate support is placed at 61,000, followed by positional support at 60,500, while resistance is seen at 61,800–62,000."

Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a SEBI-registered Research Analyst firm said, "Bank Nifty must hold 61,000 to preserve momentum toward 61,750. Existing long positions therefore require tighter risk control near resistance."

Ponmudi R, CEO of Enrich Money, a SEBI - registered online trading and wealth tech firm said, "On the upside, 61,800–62,000 remains the immediate resistance zone. A sustained breakout above this crucial hurdle could pave the way for further gains toward fresh all-time highs.
 
On the downside, 60,600–60,400 acts as immediate support, with a decisive break below this zone potentially triggering profit-booking and dragging the index toward the next psychological support at 60,000. Momentum indicators reflect strong bullish momentum, with the RSI at 90.61, rising well above its average line and remaining deep in the overbought zone, indicating aggressive buying interest."