Banking stocks traded lower in early deals on Wednesday, pulling the Nifty Bank index lower as selling spread across most large lenders. State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank and Kotak Mahindra Bank declined, while ICICI Bank was the only major lender trading in positive territory.
The NSE Nifty Bank index fell 0.63% to 57,836.75 after moving between an intraday high of 58,007.25 and a low of 57,706.75. The weakness in heavyweight banking shares kept the sector under pressure even as ICICI Bank posted marginal gains.
Among the index heavyweights, Bank of Baroda declined 1.43%, Punjab National Bank lost 1.37%, State Bank of India fell 1.33%, Canara Bank dropped 1.30% and Kotak Mahindra Bank slipped 1.01%.
ICICI Bank stood out from the broader trend, rising 0.06%.
Other lenders also traded in the red. HDFC Bank fell 0.01%, Axis Bank declined 0.80%, IndusInd Bank lost 1.34%, Yes Bank slipped 1.20%, IDFC First Bank fell 0.68%, Federal Bank declined 0.47%, Union Bank of India dropped 1.95% and AU Small Finance Bank lost 0.80%.
F&O Signals Show Fresh Short Bets
F&O data showed open interest in Bank Nifty futures rose 30.75% since the last expiry, while total open interest increased 47.28%. Call open interest rose 57.90% and put open interest increased 40.33%.
In the options market, the highest open interest on both the call and put sides was concentrated at the 58,000 strike. Call open interest additions were strongest around the 58,000 strike, while the largest reduction in put open interest was seen near the 57,500 strike.
The futures trends screen showed Bank Nifty in the liquidation category, with open interest declining 0.68% in the current contract. Fresh short positions were also visible across several banking contracts, including Bank Nifty, Union Bank, Bank of India, Bank of Baroda, Axis Bank, Yes Bank and RBL Bank.
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