Bank Nifty swings into red, slips 350 points from day's high as HDFC Bank, Axis Bank stocks drag

Bank Nifty

• Bank Nifty fell 350 points from day's high, closing at 60,894
• HDFC Bank, Axis Bank losses offset gains in IDFC First Bank
• Index consolidates above 60,600 support; upside momentum slows

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Bank Nifty slipped into the red on Thursday afternoon, falling around 350 points from the day’s high of 61,250, as selling pressure in heavyweight stocks such as HDFC Bank and Axis Bank erased early gains. As of afternoon trade, the index was at 60,894, down 0.24 percent, after failing to sustain momentum above the 61,000 mark.

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, Bank Nifty has spent multiple sessions below 61,600, signalling hesitation near recent swing highs rather than fresh expansion. He noted that while the index continues to hold above its 20-day average and remains comfortably above the 50-day average near 59,800, momentum has slowed, with overlapping daily candles pointing to consolidation.

Stock-wise action remained mixed. IDFC First Bank shares rose over 3 percent 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 percent, while Axis Bank slipped nearly 0.6 percent 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.

Ponmudi R, CEO of Enrich Money, said Bank Nifty continues to hold above the 60,900-60,600 support cluster, indicating underlying demand, but added that supply remains visible in the 61,400-61,700 zone, which has limited recent advances. He said 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.

On the broader market context, V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said that despite strong combined FII and DII buying in recent sessions, markets have struggled to sustain rallies as selling emerges at higher valuations. He said 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.

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