Bank Nifty index dropped 1% to trade near intraday low on Monday, June 1, extended its losing streak to a fourth consecutive session, dragged by weakness in private and PSU bank stocks. Most banking stocks were trading in the red. Union Bank and Canara Bank emerged as the biggest loser on the index, falling 2-3%, while Bank of Baroda and Punjab National Bank also traded lower. The index has now declined 3% over the past four trading sessions, including a 1.2% drop on Friday.
The weakness in the banking index reflects sustained selling pressure across banking shares even as the broader market remained relatively stable. Among private sector banks, Kotak Mahindra Bank dropped 1.6%, while ICICI Bank, HDFC Bank, and Axis Bank also traded over 1% lower in afternoon session. On Monday, majority of Nifty Bank were trading lower.
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This comes amid a broader sluggisg sentiment across the domestic equity benchmarks. Frontline indices are now trading at day's low after rallying earlier. NSE Nifty 50 fell 0.4% to 23,453 and the BSE Sensex fell as much as 0.4% to 74,494.56. Intraday, Nifty rose 0.8% to 23,733.70 and the Sensex rose as much as rose as much as 0.8% or 592 points to 75,357.93. Nifty 50 traded below its previous close, down 0.3%, with HUL and Tata Consumer among the top losers. Thirty-six Nifty 50 stocks traded in the red.
Bank Nifty index
Nifty Bank Outlook
In the month of May, the banking benchmark index Bank Nifty traded within a narrow range of 3,550 points, marking its tightest monthly range since January 2026. On the monthly timeframe, it has formed a high wave candle, reflecting market indecisiveness, according to domestic brokerage SBI Secutities. Currently, 54,600-54,650 zone is likely to act as a crucial resistance area for the index. Unless this hurdle is convincingly crossed, the market is expected to remain in a consolidation phase with a negative bias. On the downside, a breach below 53,870 may dampen sentiment and could lead to further weakness, dragging the index towards the 53,450-53,400 support zone. Options data suggests further fall for the index.
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