Nifty Bank Slips Into Red Amid Market Correction As ICICI, HDFC Bank And SBI Struggle
Of the 12 banks in the Nifty Bank sector, only Axis Bank, IDFC First Bank, and IndusInd Bank managed to stay in the green.
As markets corrected on Monday, the Nifty Bank mirrored the broader trend with most of its constituents trading in the red. By 10:33 am, the Nifty Bank was down 0.44%, slightly underperforming the Nifty 50 index, which saw a decline of 0.42%.
Of the 12 banks in the Nifty Bank sector, only Axis Bank, IDFC First Bank, and IndusInd Bank managed to stay in the green. The sector opened at the level of 48,264 points and hit a day's low of 48,116 points, lowest since June 2024
IndusInd Bank's stock saw a nearly 3% increase following the release of its shareholding data for the December 2024 quarter. The bank reported a decline in foreign holding to 46.63%, compared to 59.62% in Q2, a trend that has continued over the last five quarters.
Other major stocks like ICICI Bank, HDFC Bank, and State Bank of India were in the red, contributing to the sector's overall decline.
The broader market witnessed a downtrend, with the NSE Nifty 50 and BSE Sensex opening significantly lower, down 1.01% and 0.97%, respectively. However, markets recovered slightly from the lows by mid-morning, with the Nifty 50 trading 0.73% down at 23,259.70 and the Sensex at 76,894.21.
The short-term outlook for the Bank Nifty remains weak, with technical indicators suggesting potential support levels at 48,400, 47,900, and 47,500. A key resistance level is expected at 48,800, with further resistance at 49,400 and 50,000, according to Hardik Matalia, Derivative Analyst at Choice Broking.
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, "The short-term outlook remains weak, and a pullback rally may only occur after a decisive break above 49,500."
Matalia also added that a potential pullback could materialise if the Bank Nifty crosses the 49,500 mark decisively.
