Bank Nifty falls below 60k a day ahead of RBI MPC rate decision; IndusInd, Kotak lead losses: Check key trading levels

Nifty Bank declines

• Nifty Bank index fell over 0.5 percent, ending a three-day winning streak
• IndusInd, Kotak, and Yes Bank shares fell nearly 2%, leading private bank losses.
• Analysts recommend buy-on-dips as index holds above key support levels.

Did our AI summary help?

The Nifty Bank index declined in trade on February 5, snapping a three-day gaining streak. This comes amid an overall bearish sentiment in the markets today.

The index was down more than 0.5 percent at 59,927.15, as seen at 2.20 pm. The banking index had gained more than 3 percent in the past three sessions.

The fall in bank stocks today comes a day before RBI Governor Sanjay Malhotra announced decisions taken by the central bank's Monetary Policy Committee (MPC).

Top banking losers today:

Private banks led losses on the Nifty Bank index, with IndusInd Bank, Kotak Mahindra Bank and Yes Bank shares falling nearly 2 percent each. Axis Bank shares fell more than 1 percent to trade at Rs 1,322.10 apiece.

ICICI Bank and Bank of Baroda shares dropped nearly 1 percent each, while HDFC Bank, IDFC First Bank and Federal Bank shares were trading in the red with marginal losses.

Bucking the trend, public players and few private lenders were trading in the green with marginal gains. Punjab National Bank (PNB), State Bank of India (SBI), Canara Bank, Union Bank of India and AU Small Finance Bank shares were among them.

Technical view on Bank Nifty:

Resistance is seen at 60,500–60,600, while support lies at 59,900–60,000, said Hitesh Tailor, Research Analyst, Choice Equity Broking Private. Notably, the index has already broken the second support level suggested by the analyst.

Vatsal Bhuva, Technical Analyst at LKP Securities, had predicted some consolidation after the recent rise. “Bank Nifty took support at its falling trendline breakout and closed with a small candlestick on the daily chart, indicating consolidation after the recent move. In the follow-up session, the index sustaining above the 60,000 mark reflects underlying strength. The overall chart structure remains bullish, favoring a buy-on-dip strategy as long as the index holds above its short-term crucial 20-day and 50-day moving averages. Additionally, RSI has closed above its falling trendline resistance, supporting positive momentum. The immediate support is placed at 59800, while resistance is seen near 60800 levels,” the analyst said.

The Nifty Bank index is currently in a consolidation phase, and the next directional move is likely to be guided by a decisive move above resistance, said Om Mehra, Technical Research Analyst at SAMCO Securities. The analyst said that a buy-on-dips approach can be considered for this session.

“The immediate support is placed at 59,900, followed by a stronger base near 59,750, which coincides with the 0.618 Fibonacci retracement. The immediate resistance remains at 60,450–60,500, followed by 60,650,” it added.

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