Bank Nifty Drops 600 Points, Erasing Monday’s CAS Gains
By Market Desk
The Bank Nifty index fell sharply by over 600 points to 57,409.60, reversing Monday’s Closing Auction Session gains amid broad-based selling pressure in banking stocks.
The Bank Nifty index experienced a significant downturn on Tuesday, shedding over 600 points, or 1.06%, to settle at 57,409.60. This decline effectively reversed much of the sharp gains recorded during Monday’s Closing Auction Session (CAS).
- Bank Nifty settled at 57,409.60, down 1.06%.
- Axis Bank led losses at 3.23%.
- YES Bank followed with a 3.20% decline.
- State Bank of India dropped 2.41%.
- IndusInd Bank fell 2.36%.
- Federal Bank recorded a 2.09% loss.
The selling pressure was broad-based across banking stocks, extending beyond the top losers. This trend also impacted broader equity markets, with the Sensex and Nifty 50 extending losses for a second consecutive session.
- Top Losers: Axis Bank, YES Bank, State Bank of India, IndusInd Bank, Federal Bank.
- Other Lenders Down: Union Bank of India, IDFC First Bank, ICICI Bank, AU Small Finance Bank, Bank of Baroda.
- Gainers: HDFC Bank, Kotak Mahindra Bank, Punjab National Bank.
Analysts observed the Bank Nifty failed to sustain an early bounce towards 57,800, allowing sellers to dominate. Ponmudi R of Enrich Money highlighted 57,000 as a crucial immediate support level for the index. A break below this mark could lead to further declines towards the 56,800–56,700 range, while the 57,500–57,600 zone is expected to act as immediate resistance.
Momentum indicators, including the daily RSI and MACD histogram, suggest a softening trend. These metrics indicate a sharp reversal from the highs observed on Monday.