Indian equity benchmarks extended their losses in a holiday-truncated week, with the BSE Sensex falling 2.15% and the NSE Nifty 50 declining 2.36%. The Sensex shed 1,605.44 points, while the Nifty 50 lost 546.15 points over the four trading sessions.
The selloff, triggered by surging crude oil prices amid the West Asia crisis, wiped out nearly ₹21 lakh crore in investor wealth as benchmark indices declined for four consecutive sessions.
Banking stocks also came under pressure, with the Nifty Bank index falling 2.79% over the week to close at 54,287.35. The index opened at 55,827.45, but persistent selling prevented it from sustaining its recent recovery. It slipped below the 55,000 mark and ended the week down 1,556.65 points, forming a strong bearish weekly candle and snapping its two-week winning streak.
The decline in banking stocks has been uneven. Over the past week, Yes Bank was the worst performer among the 14 Nifty Bank constituents, tumbling 10.84%, followed by IDFC First Bank, which fell 7.6%, and Axis Bank, down 5.58%. In contrast, PNB, Federal Bank and Union Bank of India posted gains, while ICICI Bank edged up marginally.
Over the past month, Yes Bank plunged 32.19%, followed by IDFC First Bank, down 17.51%, and IndusInd Bank, which declined 13.66%. Federal Bank and ICICI Bank gained 4.35% and 4.32%, respectively, while Kotak Mahindra Bank rose 3.31%.
On a year-to-date basis, the Nifty Bank index has declined 8.89%, outperforming the Nifty 50 and Sensex, which have fallen 13.51% and 14.19%, respectively. The figures underline the broader weakness in Indian e
More selling pressure ahead for banking stocks?
Hitesh Tailor, Research Analyst at Choice Broking, said Bank Nifty’s weekly price action signals renewed selling pressure after the index broke below the 55,000 mark and slipped below its 100-week exponential moving average (EMA), an important technical level. The index is now approaching the immediate support zone of 53,700–54,000, while the 200-week EMA remains a crucial long-term support.
Tailor noted that the weekly Relative Strength Index (RSI) has fallen to around 39.88, below the neutral 50 mark and its RSI moving average, indicating weakening momentum and a bearish near-term outlook.
He added that the Nifty Private Bank Index declined 3.77%, with Axis Bank and HDFC Bank falling 5.62% and 4.92%, respectively. In contrast, the Nifty PSU Bank Index slipped just 0.30%, showing relative resilience. Among Bank Nifty constituents, IDFC First Bank fell 7.40%, emerging as one of the notable underperformers.
Going ahead, Tailor expects Bank Nifty to maintain a sideways-to-bearish bias. A decisive break below 53,700–54,000 could extend the decline, while any recovery may face resistance at 55,300–55,500. He said the index needs to reclaim and sustain above this resistance zone to ease selling pressure. Until then, traders are likely to remain cautious about initiating fresh bullish positions.
Key levels: Support at 53,700–54,000; resistance at 55,300–55,500.
Meanwhile, Vatsal Bhuva, Technical Analyst at LKP Securities, said Bank Nifty formed bearish candlesticks on both the daily and weekly charts, signalling sustained selling pressure. The lower-high formation remains intact, reflecting weakness in the price structure. The index is also trading below its 20-day and 50-day moving averages, reinforcing the bearish short- and medium-term outlook.
Bhuva identified 53,800 as immediate support, warning that a decisive break below this level could trigger another round of selling. On the upside, 54,800 is the immediate resistance. He recommended a sell-on-rise strategy, with traders adopting a cautious, level-based approach until the technical structure improves.
Dr Ravi Singh, Chief Research Officer at Master Capital Services Ltd, said Bank Nifty declined 2.79% during the week, snapping its two-week winning streak and slipping to a four-week low. The index is trading below its 21-day and 55-day EMAs, while its recent rebound failed to reclaim these averages, signalling sustained selling pressure and weakening momentum.
Singh placed immediate support near 53,800, adding that a decisive break below this level could drag the index towards 53,000. On the upside, resistance is seen near 54,800, which could offer a fresh selling opportunity during a technical rebound.
He said the overall technical structure would remain weak as long as Bank Nifty trades below 56,300, favouring a sell-on-rise approach amid persistent bearish momentum.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
