NewsStocksBank Nifty extends decline for second day as PSU banks fall 1.15%; Yes Bank, IndusInd Bank drop 4% eachBank Nifty extends decline for second day as PSU banks fall 1.15%; Yes Bank, IndusInd Bank drop 4% each
Bank Nifty declined 0.42% to 59,642.70 for the second consecutive session, with PSU Bank index falling 1.15% to 8,884. Yes Bank and IndusInd Bank led losses with 4% declines each, while major private banks like HDFC Bank, ICICI Bank, and Kotak Mahindra Bank posted marginal gains. Technical analysts view 60,000 as key resistance and 59,500 as strong support.
*this image is generated using AI for illustrative purposes only.
The Nifty Bank index extended its decline for the second consecutive session, breaking a four-day gaining streak as PSU bank stocks faced significant selling pressure. The index dropped 0.42% to 59,642.70 as of 12:45 pm, while the Nifty PSU Bank index declined more sharply by 1.15% to 8,884.
Major Losers Lead Banking Sector Decline
Yes Bank and IndusInd Bank emerged as the top losers on the Nifty Bank index, with both stocks falling approximately 4% each. The performance breakdown shows:
| Stock | Price | Decline |
|---|---|---|
| Yes Bank | ₹21.91 | ~4% |
| IndusInd Bank | ₹915.75 | ~4% |
| Canara Bank | - | >2% |
| Punjab National Bank | - | >2% |
| Federal Bank | - | ~2% |
| AU Small Finance Bank | - | ~2% |
| Bank of Baroda | - | ~2% |
IDFC First Bank shares declined more than 1%, while Union Bank of India and Axis Bank traded in the red with marginal losses, contributing to the overall weakness in the banking sector.
Private Bank Giants Buck the Trend
Despite the broader banking sector decline, several heavyweight private banks demonstrated resilience by posting marginal gains:
- HDFC Bank
- ICICI Bank
- Kotak Mahindra Bank
- State Bank of India
These major private sector lenders helped limit the overall decline in the Bank Nifty index, showcasing the divergent performance within the banking space.
Technical Analysis and Market Outlook
Emkay Global Financial Services noted that Bank Nifty continues to show relative outperformance, maintaining a bullish structure despite encountering mild resistance near the 60,200 level. The brokerage suggests that a sustained move above this resistance could fuel further upside, while identifying the 59,200-58,900 zone as a strong support cushion.
Axis Securities highlighted that Bank Nifty remains centered around the 60,000 level, which is acting as a key pivot for the current expiry. The brokerage's analysis indicates:
| Technical Level | Significance |
|---|---|
| 59,500 | Strong support zone with heavy Put open interest |
| 60,000 | Major resistance with highest Call open interest |
Choice Broking observed that Bank Nifty exhibited relative resilience near the 59,800-60,000 range, though hesitation around 60,000 underscores indecision in the banking complex. According to their analysis, a break above 60,000 could revive short-term bullish sentiment, while a breach of 59,500-59,600 might signal extended consolidation.
Market Context
The current decline represents a pause in the banking sector's recent momentum, with the index having enjoyed a four-day gaining streak before the current two-day decline. The divergent performance between PSU and private banks highlights the selective nature of current market movements, with investors showing preference for established private sector players over their public sector counterparts.
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