The Nifty Bank index fell to 53,869 at 12:30 pm, led by a decline in shares of Union Bank of India, Punjab National Bank (PNB), and Canara Bank, each dropping around 2%. Other major banks such as Bank of Baroda, Kotak Mahindra Bank, Axis Bank, ICICI Bank, and State Bank of India (SBI) also saw their shares fall by approximately 1% each.
Meanwhile, AU Small Finance Bank, IndusInd Bank, IDFC First Bank, and Yes Bank experienced marginal losses, while HDFC Bank and Federal Bank traded in the green with slight gains.
Bajaj Broking highlighted a bearish trend in the Nifty Bank index, noting the formation of a bearish candle with a lower high and lower low on the daily chart. The index closed below the 20-day EMA level on Friday, indicating selling pressure at higher levels. The brokerage expects the index to consolidate between 52,500 and 56,000, with immediate support at 53,970 and 53,650, and resistance at 54,610 and 54,900.
“Only a breakout or a breakdown from this range will signal the next direction movement.”
Bajaj Broking
Axis Securities identified the trend-deciding level for the Nifty Bank index at 54,513. Trading above this level could lead to a rally up to 54,910-55,979, while trading below could result in a correction to 53,842-52,774.
Bharat K Gala from Ventura expressed a negative weekly outlook for Nifty Bank, suggesting traders use levels of 53,930-(52,072-49,430) as buying opportunities if the index stays below 54,116. He warned that a close below 52,072 would be negative for the current uptrend.
“If Bank Nifty trades above this level, it may rally up to 54,910-55,582-55,979 levels.”
Axis Securities
Background
The current downturn in the Nifty Bank index is part of a broader trend of volatility in the Indian stock markets, influenced by global economic uncertainties and domestic factors. The performance of banking stocks is crucial as they are significant components of the index.
Looking ahead, market participants will be closely watching for a breakout or breakdown from the current consolidation range to determine the next directional move for the Nifty Bank index.
