Bank Nifty trades below 60k, PSU Bank index snaps 7-day gains; key levels to watch

IndusInd, HDFC bank shares see profit booking.

• HDFC Bank and IndusInd Bank fell, dragging Bank Nifty below 60,000 level
• 10 out of 14 Bank Nifty stocks traded in the red, showing broad selling pressure
• PSU Bank index snapped 7-day gains, led by Bank of Baroda's decline

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Shares of HDFC Bank, IndusInd Bank among others declined on Wednesday, dragging the Bank Nifty index lower.

HDFC Bank extended its fall for the third straight session, slipping 5.5 percent over the past three days. IndusInd Bank also declined more than 2 percent, snapping the gains recorded in the previous session. Both stocks were among the top laggards on the Bank Nifty index.

The Bank Nifty slipped below the 60,000 level to touch an intraday low of 59,771.95. The index reversed the previous day’s gains and was trading lower by over half a percent.

Out of the 14 constituents of the index, 10 were trading in the red, reflecting broad-based selling pressure in banking stocks.

Commenting on the technical outlook, Sudeep Shah, head of technical and derivatives research at SBI Securities, said the Bank Nifty had outperformed frontline indices on Tuesday and formed a bullish candle with a minor upper shadow.

He said the 60,400–60,500 zone would act as an important resistance level for the index. A sustained move above 60,500 could lead to a further upside towards 61,100, followed by 61,600 in the short term.

On the downside, the 59,700–59,600 zone is expected to act as a key support area, Shah added.

The PSU Bank index also snapped the 7-day gains to decline up to 1 percent in trade today.

Bank of Baroda was the major laggard in the index, declining up to 0.62 percent.

Bank of India and Punjab National Bank declined 0.23 percent and 0.08 percent, respectively.

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