Banking index shows bearishness, could fall 15%: Balanco

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26 Aug, 2025 12:21

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Moneycontrol Bureau

CLSA’s technical analyst Laurence Balanco expects the CNX Banks Index to decline 15 percent as it is showing a bearish pattern.

The index is down around 9 percent since the beginning of this month, and has been among the worst performers in the recent market downtrend .

“After essentially meeting the 21,441-22,574 upside target zone projected from the 2010-2014 trading range the CNX Banks index has formed a bearish price/momentum divergence and a potential double top pattern,” Balanco wrote in his note to clients.

“A break below the 10 February low at 18,226 would trigger the cited top and imply a downside target of 15,985, a 15% correction,” the note said.

According to Balanco, both SBI and Bank of Baroda have broken down from their eight month topping patterns.  

"ICICI Bank on the private banks side has also recently broken down supporting a downside target of Rs256-260 in the coming week," he said..