Bank Nifty Slumps 350 Points from Day's High Amid Weak Performance of HDFC Bank and Axis Bank Stocks

Bank Nifty Falls 350 Points from Day's High

On Thursday afternoon, the Bank Nifty slipped into the red, falling around 350 points from its day's high of 61,250, due to selling pressure in heavyweight stocks such as HDFC Bank and Axis Bank.

The intraday reversal reflected supply emerging at higher levels, a pattern that has capped recent rallies. According to Om Mehra, Technical Research Analyst at SAMCO Securities, the Bank Nifty has spent multiple sessions below 61,600, signaling hesitation near recent swing highs rather than fresh expansion.

Stock-wise action remained mixed. IDFC First Bank shares rose over 3% on heavy volumes, emerging as the top gainer on the index. Bank of Baroda and IndusInd Bank posted modest gains, while Yes Bank also traded marginally higher amid elevated turnover.

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However, declines in heavyweight stocks tilted the index negative. HDFC Bank stock was down around 0.8%, while Axis Bank slipped nearly 0.6% in afternoon trade. Weakness was also seen in State Bank of India and ICICI Bank, both trading lower and collectively outweighing gains in smaller constituents. Among PSU banks, Canara Bank, Punjab National Bank, and Union Bank of India also saw mild declines.

Technical Analysis

The Bank Nifty continues to hold above the 60,900-60,600 support cluster, indicating underlying demand, but supply remains visible in the 61,400-61,700 zone, which has limited recent advances. A sustained move above this band would be required for the index to test 61,800-62,000, while a slip below 60,600 could lead to extended consolidation.

Market Context

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Despite strong combined FII and DII buying in recent sessions, markets have struggled to sustain rallies as selling emerges at higher valuations. This trend of "sell on rallies" could continue to cap near-term upside, even as investors selectively accumulate quality financial stocks available at reasonable valuations.