The Nifty Bank index dropped in trade on October 8, snapping a six-session gaining streak as investors may have resorted to profit booking at elevated levels. Analysts have suggested key levels to watch out for the index.
The Nifty Bank index was down 0.65 percent (over 365 points) to 55,873.85, as seen at 11.35 am.
Top losers on Bank Nifty:
Canara Bank shares were the top losers on the index, dropping more than 2.4 percent to trade at Rs 124.97 apiece. Punjab National Bank (PNB) shares followed, dropping around 2 percent. IndusInd Bank shares fell more than 1 percent.
Axis Bank, Bank of Baroda, AU Small Finance Bank, State Bank of India (SBI) and HDFC Bank shares fell nearly 1 percent each, while ICICI Bank and Kotak Mahindra Bank shares were trading in the red with marginal losses.
Bucking the trend, Federal Bank shares gained nearly 1 percent.
How is Bank Nifty performing today?
After opening at 56,098.50, the index dropped more than 0.7 percent to hit a day's low of 55,821 so far. The index has now made some recovery. Notably, the index had closed in the green at 56,239 earlier yesterday, highest level seen by the index in more than three months.
Which is the next support level?
Choice Broking in its pre-market note had suggested that 55,900 was the support level on the downside, while resistance is placed near 56,400–56,600. A breakout above this zone could extend the rally toward 57,000, it said.
'Trend-deciding level for the day is 56,256'
Axis Securities meanwhile had said that the trend-deciding level for the day is 56,256. “If Bank Nifty trades above this level, it may rally up to 56,486-56,733-56,964 levels. However, if it trades below 56,256 levels, we may witness profit booking in the market, and the index may correct up to 56,009-55,778-55,531 levels,” it said.
As the bank index dropped below 56,256 today, the key levels to watch for next according to the domestic brokerage are 56,009-55,778-55,531.
Which are the key resistance levels?
PL Capital had suggested that Bank Nifty will find support at 56,009 and 55,778 in case of fall. It said the index will find resistance at 56,486 and 56,733 in case it rises.
Also read: Our LIVE blog on stock market updates
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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