The Bank Nifty index dropped below the 58,000-mark on October 24 as investors continued to book profits at elevated levels. This comes a day after the index hit an all-time high of 58,577.50 on October 23.
Bank Nifty dropped nearly 400 points (0.65 percent) to 57,699.60 on Friday, led by losses in private banks.
Top losers on Nifty Bank:
Kotak Mahindra Bank shares dropped around 1.5 percent to close at Rs 2,192.50 apiece. The private lender is set to release its results for the July-September quarter of the ongoing financial year 2026 tomorrow (October 25). Axis Bank, HDFC Bank, AU Small Finance Bank and Punjab National Bank (PNB) shares followed, dropping more than 1 percent each.
IndusInd Bank, IDFC First Bank and State Bank of India (SBI) shares fell nearly 1 percent each. Canara Bank and Bank of Baroda shares were trading in the red with marginal losses. Bucking the trend, Federal Bank and heavyweight ICICI Bank shares closed in the green.
'Trend deciding level for the day is 58,202'
The index had hit all-time high levels buoyed by better-than-expected Q2 results by some of the major players. Axis Securities had said that the trend deciding level for the day is 58,202. "If Bank Nifty trades above this level, it may rally up to 58,453-58,828-59,079 levels. However, if it trades below 58,202 levels, we may witness profit booking in the market, and the index may correct up to 57,827-57,576-57,201 levels," it said.
As the index has now dropped below the trend deciding level as well as the first support zone, the next key levels to watch out for are 57,576 and 57,201, according to Axis Securities.
PL Capital said that the near-term support at the previous consolidation zone was seen at the 57,300 level, which needs to be sustained. “On the upside, we can expect the next targets of the 59,700 and 60,500 levels in the coming days,” it added.
'Sustained move above 58,400 could open the door for a further rally'
"The index is likely to trade sideways to positive, with strong support between 57,700–57,900 and resistance at 58,200–58,400. A sustained move above 58,400 could open the door for a further rally, while a break below 57,830 may invite mild profit booking," said Choice Broking.
Nifty Private Bank index is down more than 0.8 percent, while Nifty PSU Bank index is down 0.74 percent.
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