Nifty Bank drops 400 pts as market continues to fall for 3rd straight day

Sensex slipped below 60,000 to close at 59,900, down 453 points or 0.75%. Sensex went below 59,700 intraday but recovered some losses. Nifty also slipped by 132 points to close at 17,859.

11 out 12 stocks on the Bank Nifty index were in the red with IndusInd Bank falling the most at 2.78%, or ₹33.85, to ₹1,182 on NSE.

The only bank stock from the index that bucked the trend was Bandhan Bank, closing 1.12 percent, or ₹2.70, higher at ₹243.20.

“The Bank Nifty index witnessed strong selling pressure at a higher level throughout the week and the index formed a lower low formation on the daily chart. The index’s immediate hurdle on the upside is visible at 42,500 and the next support is at 42,000 which if breached will drag the index towards the 41,500 level which will be the last hope for the bulls,” said Kunal Shah, Senior Technical Analyst at LKP Securities.

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In last 1 month, the index has lost 1,101 points from 43,289 on December 5, 2022 to 42,188.80 today. Bank Nifty reached a record high, rising above 44,000 levels, touching 44,151.80 on December 14.

Banking stocks and the Bank Nifty index had a dream run in 2022. In the year 2022, the index ran up 7,401 points from 35,585 on January 3 2022 to 42,986 on December 30, 2022.

Banking stocks have significantly outperformed the broader markets in 2022 on expectations that a pick-up in economic activity and easing of monetary policy stance by RBI will benefit financials.

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