Bank Nifty shed 370 points as PNB, Axis Bank, SBI and others fell by up to 2%. What’s next?

Banking stocks came under pressure on Monday, with the Nifty Bank index pulling down over 370 points, or about 0.7%. The index underperformed the benchmark Nifty 50, which lost only marginally. Analysts highlighted key technical levels that traders should watch for in the near term.

The Nifty Bank index was seen down to 53,869 at 12.30 pm. Shares of Union Bank of India, Punjab National Bank (PNB) and Canara Bank fell around 2% and led the losses. Bank of Baroda, Kotak Mahindra Bank, Axis Bank, ICICI Bank and State Bank of India (SBI) were down around 1%.

Shares of AU Small Finance Bank, IndusInd Bank, IDFC First Bank and Yes Bank were trading in the red with marginal losses, while shares of HDFC Bank and Federal Bank bucked the trend to trade in the green with marginal gains.

Technical View on Nifty Bank

Bajaj Broking noted that in the daily chart, the Nifty bank formed a bearish candle with selling pressure at lower highs and lower lows highlighting highs, as the index closed below the 20-day EMA level on Friday.

Going forward, the brokerage expects the index to consolidate in the range of 52,500 – 56,000. “Only a breakout or a breakdown from this range will signal further directional movement,” he said. On the downside, the index found immediate support first at 53,970 and then at 53,650. The index has now breached the first support level indicated by the brokerage and is moving towards the next level. However, on the upside, it sees resistance near 54,610 and then at 54,900.

Meanwhile, Axis Securities said the trend-critical level for the Nifty Bank index is 54,513. “If Bank Nifty trades above this level, it may rally to 54,910-55,582-55,979 levels. However, if it trades below 54,513 levels, we may see profit booking in the market and the index may correct to 53,842-53,445-53,47452 levels,” he added. is

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Ventura technical head Bharat K Gala maintained a negative weekly outlook for Nifty Bank. As long as the index trades below 54,116, traders should use the 53,930- (52,072-49,430) level as a buying opportunity, he said. “If the trend is strong, Bank Nifty will bounce back from 52,072 level; any close below should be considered negative for the current uptrend. Currently, we see (55,920-57,040)-57,940-(58,840-60,130) as sell level areas,” he added.

Also Read: Nifty has positive undertones, but street waits for decisive breakout

(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)