Nifty Bank Overview, Outlook: Key Near Term Levels, Axis Bank Top Laggard

By Malvika Gurung

Investing.com -- The key sectoral index Nifty Bank ended 0.48% or 203.7 points lower at 42,167.55 points on Monday, with constituent stock Axis Bank (NS: AXBK ) weighing on the index.

The private sector lending stock Axis Bank was the worst performer on Sensex and was among the top losers on the Nifty50 index too.

Further, Bank NIFTY Futures fell 0.49% to 42,290.

In a note provided to Investing.com, Kunal Shah, Senior Technical Analyst at LKP Securities said that Nifty Bank continued to witness downward pressure from higher levels on Monday and failed to hold the 42,500 level.

He expects to see additional selling pressure toward the 41,700–41,500 zone if the index breaks through the 42,000 support level, as it is still in a sell-on-rise mode.

“The index options data suggests a long-range bound trading session in the near term between 41,500 and 43,000, where the highest open interest is built up on the put and call sides, respectively,” Shah stated.

Constituents of the 12-scrip index ended mostly higher, led by the state-owned lender PNB (NS: PNBK ), and private lenders Federal Bank (NS: FED ) and Bandhan Bank (NS: BANH ), while private sector giants Axis Bank, ICICI Bank (NS: ICBK ) and HDFC Bank (NS: HDBK ) were the only stocks ending in the red.

Indian equity benchmark indices made a lower closing on Monday despite the headlines opening on a positive note. Headlines Nifty50 ended 0.35% lower at 17,894.85 points and Sensex dipped 0.28% or 168.21 points in a volatile session.

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