Nifty Bank Outlook, Overview: Key Levels to Watch For

By Malvika Gurung

Investing.com -- The domestic market indices ended on a negative note on Friday, led by losses across banking, financial, IT and realty stocks amid weak global cues. 

The key sectoral index Nifty Bank tanked 1.8% in Friday’s intraday trade, hitting the session’s low at 40,882.7 points and ended the day 1.2% or 499.6 points lower at 41,131.75 points on Friday, with all constituent stocks ending in the red.

In a note provided to Investing.com, Kunal Shah, Senior Technical Analyst at LKP Securities pointed out that the Nifty Bank index witnessed a breakdown on the daily chart on Friday, with a rise in volumes.

He noted that the index remains in a ‘sell’ mode as long as it sustains below the level of 41,500 level.

“The index’s immediate support stands at 41000 and if it fails to sustain it on a closing basis will accelerate the downside move towards 40,000 levels,” Shah added.

The private sector lending stock IndusInd Bank (NS: INBK ) led the losses on the 12-scrip sectoral index in Friday’s intraday, tanking 3.17%, followed by Bandhan Bank (NS: BANH ) and Federal Bank (NS: FED ).

Meanwhile, India’s top three private sector banks HDFC Bank (NS: HDBK ), ICICI Bank (NS: ICBK ) and Axis Bank (NS: AXBK ) declined up to 1% in the previous session.

Further, Bank NIFTY Futures tumbled 1.27% or 530.7 points to 41,205.05.

Benchmark indices Nifty50 declined 0.51% to close Friday’s session at 17,944.2 points, and Sensex tanked 316.94 points or 0.52%.