Banking stocks faced selling pressure on Monday, pulling the Nifty Bank index lower by more than 370 points, or nearly 0.7 percent. The sector index lagged behind the Nifty 50, which recorded only slight declines. At 12:30 pm the Nifty Bank stood at 53,869. Shares of Union Bank of India, Punjab National Bank and Canara Bank each fell around 2 percent, leading the losses. Bank of Baroda, ICICI Bank and State Bank of India slipped about 1 percent each. IDFC First Bank and Yes Bank posted modest declines, while HDFC Bank and Federal Bank traded slightly higher. Bajaj Broking noted that the daily chart showed a bearish candle with lower highs and lows, indicating selling at elevated levels after the index closed below its 20-day EMA on Friday. The brokerage expects consolidation between 52,500 and 56,000, with a breakout or breakdown needed to confirm the next move. Immediate support lies at 53,970 followed by 53,650, while resistance is seen near 54,610 and then 54,900. Axis Securities identified 54,513 as the trend-deciding level. A move above this could target 54,910-55,582-55,979, whereas a drop below may lead to corrections toward 53,842-53,445-52,774. Bharat K Gala of Ventura maintained a negative weekly view, advising traders to treat 53,930 down to 52,072-49,430 as buying zones while the index stays under 54,116. A close below 52,072 would turn negative for the uptrend, with sell zones placed at 55,920-57,040, 57,940 and 58,840-60,130.
