Bank Nifty Slumps 1% Amid 4-Day Loss Streak

Bank Nifty Extends Losing Streak to Fourth Consecutive Session

The Bank Nifty, a gauge of banking stocks, fell for a fourth consecutive session on Monday, with the index declining more than 1 percent in afternoon trade. The broad-based weakness across private and public sector lenders continued to weigh on sentiment, resulting in a decline of 573 points or 1.06 percent for the day. The Nifty Bank index was trading at 53,666 at around 1:10 pm.

Over the past four trading sessions, the index has declined by 2.9 percent, including a 1.1 percent drop on Friday and a similar fall today. The sustained selling pressure in banking shares reflects a negative undertone, despite the broader market remaining relatively stable. Most banking stocks were trading in the red, with Union Bank emerging as the biggest loser on the index, falling over 2.5 percent.

Among private lenders, Kotak Mahindra Bank fell over 1.6 percent and was among the top losers on benchmark Nifty 50 index. Other major losers included Axis Bank and ICICI Bank, which fell 1.4 percent and 1.1 percent, respectively. State Bank of India slipped nearly 1 percent, while HDFC Bank was largely flat.

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The weakness in banking stocks came despite a relatively muted decline in benchmark indices. The Nifty 50 and the BSE Sensex were moderately down by 0.3 percent. Broader markets were also under pressure, with the Nifty Midcap 100 falling over 1 percent.

Technical analysts had flagged a cautious outlook for Bank Nifty ahead of the session after the index closed sharply lower on Friday. Axis Securities noted that the index formed a bearish candle and closed below the previous session's low, indicating a negative near-term undertone. The brokerage also identified 54,513 as a key trend-deciding level, warning that a sustained move below it could trigger further profit-booking toward the 53,800-53,400 zone.

Kotak Securities also identified 54,500 as an important trend-decider, stating that the index could drift toward 53,500-53,000 if it remains below that level. On the upside, a move back above 54,500 could pave the way for a recovery toward 55,500-55,700.

Meanwhile, Bajaj Broking said Bank Nifty has slipped below its 20-day exponential moving average and continues to trade within a broad consolidation range of 52,500-56,000. The brokerage expects the 54,000-53,500 zone to act as immediate support, while 55,500-56,000 remains a major resistance area.

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Market breadth within the banking pack remained weak, with only a handful of stocks, including Federal Bank, IDFC First Bank, and Yes Bank, managing modest gains. The majority of constituents traded lower.