The Nifty Bank index staged a sharp recovery from its intraday low on January 12 after markets rallied following comments by US Ambassador Sergio Gor on the India-US trade deal. The index climbed about
677 points from the day’s low to touch an intraday high of 59,540.95.
What did the US ambassador say?
US Ambassador to India Sergio Gor said there is “no partner more essential than India” for the Donald Trump-led administration, lifting market sentiment. He added that both countries continue to engage actively and that the next round of discussions on the long-awaited trade deal will take place tomorrow. “President Trump will be visiting India in the next one to two years hopefully,” Gor said.
Assuming charge in New Delhi on Monday, Gor conveyed Trump’s best wishes to Prime Minister Narendra Modi and described the bond between the two leaders as genuine. “Real friends can disagree, but resolve the difference,” he said, portraying the ongoing trade negotiations as part of a resilient and evolving partnership.
The India-US trade deal has seen prolonged delays, which kept markets under pressure for most of 2025 amid rising Trump tariffs. Analysts had earlier said that any positive development on this front could trigger a relief rally.
Gor also referred to strategic initiatives such as Pax Silica, calling it a US-led framework with India as a key partner. “Both sides continue to actively engage. Not easy to cross the finish line, but determined,” he said, highlighting both the challenges and commitment involved.
US Senator Marco Rubio added, “This year will be a year of reciprocity,” underlining mutual intent to strengthen cooperation across trade and strategic areas.
“Positive statements by the US ambassador on continuation of talks on the India-US trade deal and reiteration of India’s importance as a trade partner led to short covering during the day,” said Sunny Agrawal, Head of Fundamental Equity Research at SBICAPS Securities.
Technical view on Bank Nifty
Axis Direct said the trend-deciding level for Bank Nifty was 59,382 — a level the index has now crossed.
“If Bank Nifty trades above this level, it may rally towards 59,609–59,967–60,195. However, if it slips below 59,382, profit booking may emerge and the index could correct to 59,024–58,796–58,439,” it said.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the 20-day SMA at 59,500 is a key level. Below this, the correction could extend to 58,800–58,500. Above 59,500, the index may rebound towards 59,800–60,000.
Choice Broking sees immediate support near 59,000, warning that a breakdown could drag the index to 58,900–58,800. On the upside, 59,500–59,600 remains a strong resistance zone, and only a decisive breakout above this band would revive bullish sentiment.
Top bank gainers
IndusInd Bank was the top gainer on the index, rising over 2 per cent. ICICI Bank followed with gains of over 1 per cent. State Bank of India, AU Small Finance Bank, Yes Bank and Union Bank of India advanced nearly 1 per cent each.
Kotak Mahindra Bank and HDFC Bank also traded in the green with marginal gains.
Meanwhile, Punjab National Bank, Axis Bank, Bank of Baroda, Canara Bank, IDFC First Bank and Federal Bank slipped up to 1 per cent, bucking the broader recovery.
