Robust results by leading private lenders like HDFC Bank and ICICI Bank reflect rising investor confidence in the sector’s fundamentals, and the stock market is likely to respond positively to their Q4 FY25 results when it opens on Monday, according to analysts. 

The Bank Nifty index surged by 2.2 per cent on April 17 to close at 54,290.20, just 177 points shy of its 52-week high of 54,467.35. The rally was driven by strong gains in heavyweight constituents like HDFC Bank and ICICI Bank. The overall banking space showed impressive strength, reflecting rising investor confidence in the sector’s fundamentals.

India’s largest private sector lender HDFC Bank posted 6.7 per cent (year-on-year) rise in standalone net profit to Rs 17,616 crore in the fourth quarter pf FY25. On a sequential basis, net profit rose by 5.3 per cent. ICICI Bank, India’s second-largest private sector lender, reported strong financial results for the fourth quarter of FY25, with its net profit rising 18 per cent year-on-year (YoY) to Rs 12,630 crore.

Yes Bank also reported a strong performance in the January-March 2025 quarter (Q4), with its net profit rising 63.7 per cent year-on-year (YoY) to Rs 738.12 crore. According to market watchers, technically, Bank Nifty has formed a strong bullish candle on the daily chart, making a high of 54,407.20 — just 60 points away from its all-time high. Over the last seven trading sessions, the index has gained a remarkable 10.68 per cent, rallying over 5,250 points from its recent swing low.

“The consistent one-way move, along with a close near 54,290 on strong volumes, signals aggressive buying interest and sustained bullish momentum. Any dips towards 53,600 or 53,000 are expected to be used as buying opportunities by market participants,” said Kailash Rajwadkar of Choice Broking.

Additionally, both PSU and private banking indices are showing bullish setups. The PSU Bank index has confirmed an inverted Head & Shoulders breakout, reinforcing the case for further upside.

If Bank Nifty manages to close above 54,300 convincingly, it could potentially head towards the 55,000 and 56,000 levels in the coming sessions, as per Fibonacci extension targets. The overall trend remains firmly positive with strong sectoral participation, said Rajwadkar.