Bank Nifty Declines 0.9% on Profit Booking
The Bank Nifty extended losses in Friday’s session, slipping about 0.9 percent amid profit booking in a weak broader market. Eleven of the 14 constituents ended lower.
Top Losers: Canara Bank, PNB, and HDFC Bank
Shares of Canara Bank declined up to 2 percent to emerge the top loser. Punjab National Bank and HDFC Bank fell 1.9 percent and 1.8 percent, respectively. Other major laggards included Axis Bank, ICICI Bank, Kotak Mahindra Bank, and AU Small Finance Bank, which declined up to 1 percent.
Technical Analysis: Key Support and Resistance Levels
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, said the index had traded within a 431-point range over the last four sessions and has now broken below the lower end of the consolidation zone. “The breakdown was accompanied by a bearish daily candle. RSI, which had plateaued near 60, has started turning down, suggesting bulls are losing grip around the key support area,” he said.
According to him, immediate support is placed in the 20-day EMA zone of 60,000–59,900. A sustained move below this area could push the index towards 59,500, followed by 59,000 in the short term, while 60,500–60,600 may act as immediate resistance.
Vatsal Bhuva, Technical Analyst at LKP Securities, said the index slipped below a short-term consolidation range, indicating minor profit booking after the recent upmove. He added the index continues to trade above its 20-day moving average near 59,700, which remains a key support. Immediate support is seen in the 59,800–59,700 zone, with a stronger base at 58,800–58,700. Resistance is placed near 60,800–61,000.
Broader Market Weakness
The decline in Bank Nifty tracked weakness in the broader market. The equity benchmarks traded with a negative bias through the day as selling in information technology (IT) stocks intensified. After a weak start, the market moved in a narrow range during the first half before losses deepened later. The benchmark index settled near the day’s low at 25,471.10, with selling seen across sectors, particularly IT, along with metal, realty, and FMCG stocks.
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Conclusion
In conclusion, the Bank Nifty declined 0.9% on Friday amid profit booking in a weak broader market. The index continues to trade above its 20-day moving average near 59,700, which remains a key support. Immediate support is seen in the 59,800–59,700 zone, with a stronger base at 58,800–58,700. Resistance is placed near 60,800–61,000.
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